POR EXCLUSIVE USE 

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LIBRARY OF CONGRESS. 

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For the Exclusive Use of Massey’s Practical Business Colleges. 


MASSEY’S 

Modern Book-keeping 


Taught by Actual Transactions. 



By Richard W. Massey, 

With the Collaboration of W. A. Ross, J. M. Latham, and 
S. S. Hoover, Principals of the Massey Colleges. 


This system of teaching by actual business transactions is copyrighted and pub¬ 
lished for the exclusive use of our students, thereby giving them a decided advantage 
over students attending schools where text-books on book-keeping are used. 


Copyrighted, 1896, by R. W. Massey. 


Columbus, Ga. Montgomery, Ala. 

Jacksonville, Fla. 


Atlanta 

THE FOOTE & DAVIES COMPANY. 
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Note — Apply to your teacher for the number of Price-List which you are to use, and copy it on a separate sheet of paper. 
Be sure your figures are correct. 











































































































PREFACE. 


| HIS is an age of intense practicability, and the 
1 science of accounts, as well as business practices, and 
customs, should be taught in a practical manner, with 
real transactions, not by theory or imaginary transactions, 
as is too often the case where the teacher has no further 
experience in book-keeping than that which he gained 
from a text-book. 

We learn by doing, and actual business from the beginning 
has its manifold advantages. 

The best part of the author’s extensive experience, both 
as an expert accountant and teacher, is incorporated in 
these lessons, and it is believed that they have a greater 
degree of perfection than it is customary to find in works 
on book-keeping. 

The one great aim of the work is to teach business as 
practiced by the leading business men of to-day, enabling 
students to leave the Massey Colleges thoroughly 
equipped for any kindjof business. 


R. W. M. 



TO THE STUDENT. 


A S YOU enter upon the study of book-keeping, re¬ 
member there is no royal road to learning, and the 
student who would succeed must apply himself. No 
teacher, whatever his abilities may be, can force an educa¬ 
tion upon an unwilling pupil; neither can a teacher edu¬ 
cate a persistently idle pupil. Within yourself lies the 
material for either success or failure. Make the most of 
your opportunities, and do nothing without system. 
Neatness, cleanliness, and accuracy should characterize 
your work throughout. 

Be self-reliant and never ask help until your own 
resources have been exhausted. Your teacher is your 
best friend, but it is well to remember that it is his duty 
to guide you and not to do your work. 

You are preparing for life’s work, and educated labor is 
always in demand. The master mechanic commands the 
highest salary; the best book-keepers are never out of 
employment long at a time; the heads of departments, 
who know more than you, draw the heaviest envelopes. 

The object of education is, or ought to be, practical 
utility. We study because learning has its market value ; 
because educated men can make money more readily and 
more surely than uneducated men can; because an educ a- 
tion will open up to us more agreeable pursuits than 
untaught men can follow. 

It is believed that our system, when conscientiously fol¬ 
lowed, will develop that which is best in the student, and 
such isjny sincere desire. 

Sincerely yours, 

THE AUTHOR. 


December 16, 1896. 


Massey’s 

Modern Book-keeping. 

INTRODUCTORY PART. 


1. Book-keeping 1 is a systematic record of business 
transactions. 

2. A Business Transaction is an exchange of values. 

3. Value is the worth—real or estimated—of any¬ 
thing. 

4. Book-keeping is divided into two general classes— 
Double Entry and Single Entry. 

5. In Single Entry, accounts are kept with persons 
only; while in Double Entry additional Ledger accounts 
are opened with merchandise, cash, bills receivable, bills 
payable, interest, discount, etc. 

6. The Day-book is the book in which is written 
the complete history of the business transactions. 

(For illustration of Day-book, see page 35.) 

7. The Journal is the book in which are arranged 
the debits and credits of accounts in a convenient form 
for posting to the Ledger. 

(For illustration of Journal, see page 37.) 

8. Journalizing 1 is deciding upon debits and credits. 

9. The Ledg’er is the book wherein the debits and 
credits are collected under their proper Ledger titles. 

(For form of Ledger, see page 39.) 

10. Posting 1 is carrying the items and amounts from 
the Journal to the proper accounts in the Ledger. 

11. An Account is a collection of debits and credits 
of the same kind, arranged under a proper heading in the 
Ledger. 




6 


massey’s modern book-keeping. 


12. The Left Side of an account is known as the debit 
side ; the Right Side of an account is known as the credit 
side. 

13. Debtor is abbreviated Dr., and credit or credit¬ 
or, Cr. 

14. Brief Rule for Journalizing: Debit what you 
receive or what costs value; and credit what you sell or 
what produces you value. 

(Illustration: We buy from a merchant 5 bbls. of flour @ 
$3.00 per bbl., paying cash for same. We would debit Merchan¬ 
dise, because we receive it or it has cost us value. We would 
credit Cash because it was paid out.) 

15. A Trial-balance is a collection of debits and 
credits taken from the Ledger and added to see if the 
Ledger is in balance. The sum of the debits must al¬ 
ways equal the sum of the credits. 

(For illustration of Trial-balance, see page 41.) 

1 6. There are two Classes of Accounts in the Ledger 
—one showing the losses and gains of the business (called 
Loss and Gain Accounts), the other the resources and 
liabilities (called Resource and Liability Accounts). 

17. Resources (sometimes called Assets) mean the 
entire property belonging to a business. Liabilities are 
debts, and include all which the business owes, both on 
open accounts and notes. 

18. When the Debit (that is, left) side of an account 
is the larger, the difference, if the account belongs to the 
loss and gain class, shows a loss; if the account belongs to 
the resource and liability class, a resource. If the credit 
( that is, right) side is the larger, a gain as above, or a 
liability as above. 

(For illustration of Loss and Gain’Account, see the following- 
form:) * 

MEKCHANDISE. 

1896_ 1896 


4 


5 

520 


Jan. 

4 


4 

120 

75 

7 


8 

110 


(. 

6 


5 

60 








8 


8 

400 


























massey’s modern book-keeping. 


7 


From this account ype find that merchandise cost $680.00. We 
also find that merchandise to the value of $570.75 was sold. This 
would show a loss of $59.25 if all the goods bought had been sold. 
By examining our stock, however, we find that we have goods to 
the value of $200.00 remaining unsold, which, added to the sales, 
makes a total credit of $770.75. From this amount subtract the 
cost and we find a gain of $140.75. 


Merchandise sales $570 75 

“ on hand. 200 

“ total. 770 75 

“ cost.680 

“ gain . 140 75 


W. C. CLARK. 


1896 1896 



From this account we find that W. C. Clark owes us $840.00. 
We owe him $100.00. The difference—$740.00—is the net amount 
of his indebtedness to us, which is a resource. 


J. A. KIRVEN & CO. 



From this account we find that we owe J. A. Kirven & Co. 
$1000.50. We also find that they owe us $400.50. The difference— 
$600.00—is the net amount we owe them, hence a liability. 

19. Statements (sometimes called Balance-sheets or 
Test Statements) are made from the Trial-balance and 
inventories, to show the net loss or gain and the total re¬ 
sources and liabilities before closing the Ledger. 

(For completed Statement, see page 41.) 

20. An Account is Closed to show, in a single sum, 
the amount of loss or gain, or the resource or liability of 

that particular Account. 

(See form of Ledger closed, on page 42.) 






















































8 


massey’s modern book-keeping. 


21. Closing 1 Ledger Accounts. In closing a Personal 
Account, write in red ink on the smaller side,first the date 
in the date column, second the word “Balance” in the 
explanation column, and then the difference between the 
two sides in the amount column. In closing a Loss and 
Gain Account without an inventory, write in red ink on the 
smaller side, first the date in the date column, second, the 
word “Loss,” if the debit is larger than the credit, or 
“Gain,” if vice versa, in the explanation column, and then 
the difference between the two sides in the amount column . 

In closing a Loss and Gain Account having a resource 
inventory, we proceed as outlined above, first having writ¬ 
ten in red ink on credit side of the account, date, inventory 
and the amount. 

(For forms of Loss and Gain Accounts closed, see page 42.) 

22. Ruling* should be made with red ink, single lines 
being used above the footings and double lines below to 
show that the account is closed. 

(For form of Kuling, see Ledger Accounts, page 42.) 

23. Merchandise Account is used to show the loss or 
gain on Merchandise. It is debited for the value of Mer¬ 
chandise bought, goods returned to us by others, and goods 
invested at the beginning of the business. It is credited 
for the value of goods sold and returned to others by us. 

(For illustration of Merchandise Account, see form under para¬ 
graph 18, page 6.) 

24. The Inventory (goods on hand) is found by ex¬ 
amining the stock and making a list of the goods on hand. 
It is added to the credit side of an account before the loss 
or gain is found. If the debit side is larger, the difference 
shows a loss, if the credit side is larger, it shows a gain. 

(See how Inventory is added to the credit side of Merchandise 
Account, page 42.) 

25. Cash Account is used to show the receipts and 
payments of Cash. It is debited when Cash is received; 
credited when Cash is paid out. This account always 
shows a resource, as more Cash cannot be paid out than 
that which has been received. Sight drafts payable to 


massey’s modern book-keeping. 


9 


us, bank drafts, checks of others, money orders, etc., are 
considered Cash. 

(For illustration, see the following form :) 

CASH. 


9 

| 

7 

1500 


Jan. 10 



8 

j 500 






“ 16 



10 

600 


Cash received.$1 500.00 

Cash paid out. 1100.00 


Cash received.$1 500.00 

Cash paid out. 1100.00 

Cash on hand.$ 400.00 


26. Personal Accounts are used to show what we owe 
others or what others owe us. They are debited when we 
sell to persons on account, or pay them on account. They 
are credited when we buy of persons on account, or they 
pay us on account. The difference will show a resource if 
the debit side is the larger; a liability if the credit side is 
the larger. 

(For illustrations, see Accounts of W. C. Clark and J. A. Kir- 
ven & Co., page 7.) 

27. Bills Payable Account is used to show the 
amount due others on our notes or acceptances. It is 
credited w r hen we give our notes and accept others 
drafts on us; it is debited when we pay our notes or accept¬ 
ances. The difference, if any, will always show a 
liability, as we cannot redeem more of our notes or 
acceptances than we have issued. Bills Payable are 
always recorded at their face value. 

28. Bills Receivable Account is used to show the 
amount due us on others’ notes or acceptances. It is 
debited when we receive another person’s note or accept¬ 
ance. It is credited whenever another person pays us for 
his note or acceptance. The difference, if any, will 
always be a resource, as we cannot collect for more notes 
than those we have received. Bills Receivable, like Bills 
Payable, are always debited and credited at their face 
value. 

29. Interest Account is used to show the loss or gain 
on Interest. It is debited when Interest is allowed to 

























10 MASSEY’S MODERN BOOK-KEEPING. 

others ; it is credited when Interest is allowed to us. The 
difference will show a loss if the debit side is the larger; 
a gain if the credit is the larger. 

30. Discount Account is used to show the loss or 
gain on Discount. It is debited when Discount is allowed 
to others; it is credited when Discount is allowed to us. 
The difference will show a loss if the debit side is the 
larger; a gain if the credit side is the larger. 

31. Expense Account is used to show the loss sus¬ 
tained in conducting the business. It is debited for the 
cost of conducting the business, and credited for the sale 
of anything previously debited to Expense. The differ¬ 
ence in this account nearly always shows a loss. 

32. Ledger Bank Account. It is customary with 
some book-keepers to have a Bank Account in their 
Ledger. When this is done the Bank should be debited 
for all deposits, and credited for all checks drawn upon 
it. 

33. Proprietor’s Account (sometimes called “Stock” 
Account) is used to show the Proprietor’s interest in the 
business. It is debited for all debts that he owes, which 
are to be paid from the business, for any withdrawals, 
and for the net loss, if there be any. It is credited for 
all investments, and the net gain. The difference between 
the two sides, if the credit side is the larger, will show the 
present worth; if the debit is the larger, the net insol¬ 
vency. 

34. Filing Invoices. Students should receive a Bill 
for each purchase made and carefully paste the same in 
the Book of Invoices for future reference. No grades will 
be granted on any set unless a Bill is shown for every 
purchase made. 

35. Receipts. The object in giving or receiving a 
Receipt is to furnish proof of payment; and it therefore 
constitutes evidence of great weight, although it is not 
conclusive proof of payment. The custom of taking 
Receipts for all payments of money cannot be too‘fully ob¬ 
served, and once taken, they should always be preserved. 


massey’s modern book-keeping. 


11 


36. Forms of Receipts. 

Receipt for Rent Paid. 

$ 35 - oo - Montgomery, Ala., Jan. 2,1896. 
Received from S. S. Hoover 

Thirty-five *..Dollars 

in payment of rent for storehouse No. 67 Dex¬ 
ter Avenue for the month ending Jan. 31 , 189 6 - 

A. Landlord. 

Receipt for Money Paid on Account. 

$25.00. Montgomery, Ala .,Jan. 2, 189 6 . 

Received from A. Dexter Sr Co. . 

Twenty-five ...Dollars 

to apply on account. 

A. Student Sr Co. 

Form of Bill. 


Atlanta, Ga., April 6, 1895. 
Mr. T. E. Berry . 

Bought of J , § S®., 

DEALERS IN 

Dry Goods, Fancy Articles, Notions, Etc. 

30 days, less 5 per cent. 10 days. 

Terms :. 


15 

yds. Burnett Silk @ $ 1.00 

15 



10 

“ W. C. Lace @ .10 

1 



1 

“ Atlanta Cotton @ .05 


05 


100 

“ Eagle Cotton @ .06 

6 

— 

22 


























12 


MASSEY S MODERN BOOK-KEEPING. 


37. Bills and Invoices. Sometimes a Bill, or Invoice, 
is given at the time of purchase, but usually it is sent 
when the goods are delivered. A Bill should specify the date, 
place of sale, name of buyer and seller, and contain a 
description of the goods sold. Terms of the sale also 
should be specified. 

38. Checking* Invoices. When goods are received, 
the quality and quantity are compared with the Invoice 
to see if all is correct; then it is checked 0. K. All In¬ 
voices received should be carefully filed away or pasted in 
Book of Invoices for future reference. 

39. Statements of Accounts. A Statement of an 
account is simply a statement of the debit, or the debits 
and credits, of an account as shown by the Ledger. As 
itemized bills are generally given with the sales, it is 
unnecessary to itemize the statement. It should, however, 
exhibit each debit and credit, together with the dates. It 
is customary with book-keepers to render Statements on 
the first of each month. The up-to-date accountant will 
have all of his Statements ready to mail on the first day. 

40. Banks. To many people, everything connected 
with financial institutions seems to be mysterious; yet 
there is scarcely anything plainer than the business of 
Banking. A Bank is simply a place where money is 
deposited, either with or without interest, subject to the 
demands of the depositor. 

41. Money is a medium by which business transac¬ 
tions are carried on with all parts of the world, and the 
care and the investment of it is learned by education 
and experience. 

42. Opening* a Bank Account. When you wish to open 
a Bank Account, if possible, get an introduction to the 
cashier of the Bank. Frankly tell him about the volume 
of business you will probably do with the Bank and such 
other information as he may likely desire. The cashier 
will have you place your signature in a book kept for this 
purpose. 


massey’s modern book-keeping. 


13 


43. Check Signatures. In writing your name in the 
Signature-book, you should use the style of signature 
you intend to adopt for signing all checks. Never change 
that style of signature. Always write it the same way. 

44. Deposit Slips are slips upon which a record is 
made of the cash, checks, drafts, etc., to be deposited in 
the Bank. We fill out the deposit ticket and present it 
with the cash, checks, etc. (the checks being properly 
indorsed), at the Bank. Then the banker will enter the 
amount of our deposit in our Bank pass-book. 


Form of Deposit Slip. 


FOURTH NATIONAL BANK, 

COLUMBUS, GA. 

Deposited January 7 , 1896- 

By IV. T. Daniels Sr Co. . 

Bills. 

125 


Coin.. • 

750 


Checks ...... 



(enter each check.) 



W. A. Ross , 

100 


S. S. Hoover , 

125 

75 

Lacy A Co., 

150 


Total. 

1250 

75 


45. Pass-book. On opening a Bank Account, a Pass¬ 
book is furnished to the depositor, in which are entered all 


















14 


massey’s modern book-keeping. 


deposits made. This book should be left with the Bank 
at the end of each month to be balanced. The student, in 
the following work, should have his Pass-book balanced at 
the end of each set. 

46. Checks are written orders for money, drawn on a 
Bank or banker by a depositor, payable on demand to the 
person named therein, or to his order, or bearer. 

(For form of Check-book, see page 43.) 

47. Overdrafts. To overdraw is to give checks for more 
money than you have to your credit in the Bank. 

An amusing story is told of a lady who opened an account, re¬ 
ceiving a check-book. In doing her shopping, she very soon had 
given checks for more money than she had deposited. Upon 
being notified of the fact by her bankers, she became quite indig¬ 
nant, and said the bank had better get a new book-keeper, as she 
had still several checks left. 

Moral :—Never overdraw your Bank Account. 


SPECIAL DIRECTIONS. 

One of the first elements of good book-keeping is neat¬ 
ness. Business men require that their books be neatly , as 
well as correctly kept. The writing in a set of books should 
be neat, plain, smooth, rapid and legible, and without 
shading. The figures should be written small and plain, 
and ruling done with care. Great care should be taken to 
avoid blots and erasures, and that the books should present 
a generally neat and creditable appearance, both inside 
and outside. 



|NAAAAAAAAAiflsA^^SR^^3SA?S 

| SET ONE. S 

/m ?Tf5/\ tTK TTCTfc tin 

48. The Object of Set One is to explain book-keeping 
in its simplest form, giving the accountant’s routine from 
the time the first transaction occurs until the Ledger is 
ruled and closed. This set should be thoroughly understood 
and the student who leaves it without this knowledge does 
himself a great injustice. 

49. The Books used in this set are: First, the Day¬ 
book; second, the Journal; third, the Ledger. The 
manner of opening a Bank Account is also explained in 
this set, as well as the use of the Check-book and Bank 
pass-book. 

Note to Student.—Before beginning Set One, read pages 
3 and 4, also paragraph 22. The next step is to turn to your 
“Practice Ledger” and rule carefully two pages, using red ink, 
For form of Ledger ruling, see page 42. When completed, pre¬ 
sent Ledger to your teacher. If accepted, return to your seat 
and commit to memory paragraphs 1 to 6, inclusive. 

It is absolutely necessary for the student to carefully follow directions 
given , especially the notes after each transaction. Rely upon yourself 
as far as possible. 

SET ONE. TRANSACTIONS. 

(1) Begin a Retail Grocery business with a cash capital 
of $2000.00. 

Note.—Apply to your teacher for $2000.00, the amount you are 
to invest in business. He will give you a check, payable to your 
order, for this amount. Write your name across the back on the 
left-hand side and present at the Bank to be cashed. Carefully 
count the money received. Return to your seat and turn to your 
Day-book. Make the following, writing on the blue line at the 
top of the first page, the name of your city and State, and the date 
(month, day and year). 

{City ., State ., Date .189..) 


(Write your name here) began a Retail 

Grocery business. Invested Cash, 
















16 


massey’s modern book-keeping. 


Now place a check-mark (j/) opposite transaction one, in 
your instruction book, to show that you have performed it. Place 
a check-mark to each transaction as performed. 

(2) You will now open a Bank Account by depositing 
to your credit, the money received from your teacher 

Note.—Turn to page 12 and carefully read paragraphs 40 to 
47, inclusive. Apply to some one of your fellow-students for a let¬ 
ter of introduction—see form in “Model Book” on teacher’s desk— 
which present to the cashier of the Bank, together with deposit 
slip—see form under paragraph 44—Bank pass-book and money. 
Write your signature in Signature-book. Return to your seat and 
and record in your Day-book, just below last entry, leaving one 
line blank below first transaction, as follows : (Also write on the 
stub of your check-book, “Deposited $2000.00,” with date. For 
form of check-book, see page 43.) 


Deposited in (name of) Bank 
Cash 


2000 


(3) Rent a store and pay one month’s rent, $35.00 v 
Buy office books and stationery, $20.00. 

Note.—Write a check, payable to your teacher (see form on 
page 43) for $55.00. Be sure to subtract the amount of this check 
from deposit already entered on stub of check-book. Present a 
receipt, properly filled out (see form on page 11), for his signa¬ 
ture. No receipt is necessary for amount paid for books. Com¬ 
mit to memory paragraph 35. Place receipt received from your 
teacher in a large envelope and label “Receipts.” All receipts re¬ 
ceived in the future should be placed in this envelope. Next 
turn to your Day-book, and one line below the last entry, 
write precisely as follows : 


Gave check for 




Rent, one month from date , 

35 



Office books and stationery , 

20 


55 


(4) Buy from R. W. Massey & Co., terms check: 
100 Bbls. Family Flour @ $3.00. 


Note.—Students of the night school will buy from wholesale 
house doing business at nights. Write check favor of R. W. 
Massey & Co. (or night wholesale house) for $300.00, and present 
with order blank, properly filled out, to the wholesale house and 
receive the goods. Now turn to paragraph 38, and carefully 
read. 

















MASSEY S MODERN BOOK-KEEPING. 


17 

You should receive with the goods just purchased an invoice 
(or bill) which you will number as No. 1, and paste in your 
“Book of Invoices” for future reference. Now turn to your 
Day-book and record as follows : 


Bought from B. W. Massey & Co , 
check, 

100 Bbls. Family Flour @ $3 00 
Invoice No. 1. 


300 


(5) Sell your teacher, terms cash : 

90 Bbls. Family Flour @ $4.00. 

Note.—Write invoice and present with merchandise to your 
teacher and collect cash for the amount. Read paragraph 37 and 
see form of bill on page 11. Now turn to your Day-book and 
record as follows: 


Sold ( teacher's name), cash, 

90 Bbls. Family Flour @ $4.00 


360 


(6) Buy from Southern Commission Co., terms on 
account: 

10 Cases, 360 doz., Eggs @ 10c. 

Note.—Call on your teacher, who represents Southern Com¬ 
mission Co., for the goods. You should always receive an in¬ 
voice (or bill) for all purchases you make, excepting from firms 
represented by your teacher. When the firm is represented by 
your teacher, make out the bill from him to you, and present to 
him for the merchandise. Then record in Day-book as follows : 



Bought of So. Com. Co.,on acc't, 





10 Cases, 360 doz., Eggs @ .10 



36 


(7) Sell Amory Dexter & Co., terms on account: 

5 Cases, 180 doz., Eggs @ 15c. 

Note.— Deliver merchandise, with invoice, to your teacher, 
who represents this firm, and record in Day-book as follows : 



Sold Amory Dexter & Co., on acc't, 





5 Cases, 180doz., Eggs @ .15, 



27 


(8) Buy from J. A. Power & Co., terms check: 
1 Sack, 125 lbs., Fancy Coffee @ 20c. 

1 Box, 25 lbs., XXX Crackers @ 6c. 

1 Box, 35 lbs., Cheese @ 13c. 


































18 


MASSEY’8 modern book-keeping. 


Note.—Draw check to the order of J. A. Power & Co., and 
present to teacher and receive merchandise. Record in Day-book 
as follows: 



Bought of J. A. Power & Co., check, 





125 Lbs. Fancy Coffee @ .20 

25 




1 Box, 25 lbs.,XXX Crackers @. 06 

1 

50 



1 Box, 35 lbs., Cheese @ .13 

4 

55 

31 


(9) Sell to W. P. Gould, terms cash: 

1 Box, 35 lbs., Cheese @ 16c. 

Note.—Deliver merchandise and invoice to teacher and re¬ 
ceive cash. Receipt invoice and record in Day-book as follows : 

Sold W.P. Gould, cash, II I II I 

1 Box, 35 lbs., Cheese @ .16 || | || 5 | 60 

(10) Buy from Southern Commission Co., terms on 
account: 

500 Lbs. Stick Candy @ 12c. 

2 Buckets, 100 lbs., Fancy Candy @ 15c. 


Note.—Call on teacher for goods. Record in Day-book as 
follows: 


Bought of So. Cow,. Co., on acc’t , 

2 Boxes, 500 lbs., Stick Candy @ .12 
2 Buckets, 100 lbs., Fancy Candy@ .15 


60 

15 


75 


(11) Sell Amory Dexter & Co., terms on account: 

1 Sack, 125 lbs. Fancy Coffee @ 25c. 

10 Bbls. Family Flour @ $3.50. 

Note.—Deliver merchandise and invoice to teacher. Record 
in Day-book as follows : 



Sold Amory Dexter & Co., on acc’t , 

1 Sack , 125 lbs., Fancy Coffee @.25 





31 

25 



10 Bbls. Family Flour @ $3.50 

35 


66 


(12) Pay Southern Commission Co., to apply on ac¬ 
count, $25.00. 

Note.—Write a check favor of Southern Commission Co., and 
hand to teacher and present a receipt properly written for his 
signature. File receipt in “Receipts” envelope. Turn to your 
Day-book and record as follows : 

I \ Paid Southern Com. Co., on acc’t, II I II I 

Check No. 4, || | ]| 25 | 




























massey’s modern book-keeping. 


19 


(13) Collect cash $25.00 from Amory Dexter & Co., 
to apply on account. 

Note.—Present receipt, properly written and signed to your 
teacher for the money. Turn to Day-book and record as follows : 


1 Amory Dexter & Co. 

1 II 

Paid us on account , 

II 25 


(14) Buy from R. W. Massey & Co., terms on ac¬ 
count : 

2 Boxes, 50 lbs., XXX Crackers @ 6c. 

Note.—Present order blank to wholesale house and receive 
merchandise. Check invoice and if it corresponds with the 
goods received, number and file away in proper form in “Book 
of Invoices.” Turn to your Day-book and record as follows : 



Bought o/R. W. Massey & Co., 





on acc’t, 

2 Boxes , 50 lbs., Cra kers @ .06 



3 


(15) Buy of Amory Dexter & Co., terms on account: 
10 Bbls. Family Flour @ $3.00. 

Note.—Call on teacher for merchandise. Record in Day¬ 
book as follows: 


Bought of A. Dexter & Co., on acc’t, II 
10 Bbls. Family Flour @ $3.00 || 


30 


(16) Buy from W. P. Gould, terms on account: 

2 Sacks, 250 lbs , Fancy Coffee @ 20c. 

1 Sack, 125 lbs., Choice Coffee @ 17c. 

Note.—Cet merchandise from teacher and record in Day¬ 
book as follows: 



Bought of W. P. Gould, on acc’t , 





2 Sacks, 250 lbs., Fancy Coffee @ .20 

50 




1 Sack, 125 lbs., Choice Coffee @ .17 

21 

25 

71 


(17) Buy from Southern Commission Co., terms 
check: 

1 Box, 35 lbs., Cheese @ 13c. 


Note.—Write check payable to Southern Commission Co., or 
order, and present to teacher for merchandise. Turn to your Day¬ 
book and record as follows : 



Bought of Southern Com. Co., check, 



4 


1 Box, 35 lbs., Cheese @ .13 
































20 


massey’s modern book-keeping. 


(18) Sell Amory Dexter & Co., terms on account: 

3 Boxes, 75 lbs., XXX Crackers @ 12-J-c. 

2 Bbls., 500 lbs., Stick Candy @ 20c. 

Note.—Deliver merchandise and invoice to your teacher. 
Turn to your Day-book and record as follows: 



Sold Amory Dexter & Co., on account, 

3 Boxes, 75 lbs., XXX Crackers @ .12$ 





9 

38 



2 Bbls., 500 lbs., Stick Candy @ .20. 

100 


109 


(19) Student may now take an inventory of the goods 
on hand and enter in Day-book. 

Note.—Read paragraph 24 and turn to your Day-book and 
write as follows: 

INVENTORY. 


2 Buckets, 100 lbs., Fancy Candy @ .12 



$ 12 

00 

2 Sacks, 250 lbs., Fancy Coffee @ .20 



50 

00 

1 Sack, 125 lbs., Choice Coffee @ .17 



21 

25 

10 Bbls. Family Flour @ $3.00 



30 

00 

1 Box, 35 lbs., Cheese @ .13 



4 

55 

5 Cases, 180 doz., Eggs @ .10 



18 

00 




$135 

80 



















massey’s modern book-keeping. 


21 


DIRECTIONS FOR JOURNALIZING. 

50. As the student has now recorded in the Day-book 
the transactions as they were performed, he is ready to 
take up the next step—Journalizing. 

First, however, paragraphs 7, 8, and 14 should be thor¬ 
oughly committed to memory. Students are provided with 
two Journals, one the “Practice” Journal, and the other the 
“Permanent” Journal. Open your “Practice Journal” by 
writing the name of your city, State, and date of the first 
transaction, same as in the Day-book. Reading the first 
transaction in the Day-book, we find that Cash to the 
amountof $2,000.00 was received into the business. Write 
“Cash” on the first blue line in the Journal, and in the first 
(debit) column write the amount ($2,000), omitting cents. 
This debits Cash. Now turn immediately to paragraph 25 
and commit to memory the rule for journalizing Cash. We 
debit Cash because the business receives that amount. On 
the next line write your name, beginning about the mid¬ 
dle of the wide space. Write the amount ($2,000) in the 
second (credit) column, opposite vour name. This credits 
you for your investment. Now turn immediately to para¬ 
graph 38 and commit to memory the rule for journalizing 
the Proprietor’s Account. Your entry, when completed, 
will appear thus: 


(City ..., State ., Date .189..) 




Cash, 

2000 






To A. Student , 



2000 



51. Next place a check-mark (j/) in the Day-book to 
the left of the transaction, on the last line, to show that 
the fact has been journalized. Leave one blank line after 
each journal entry. 

52. Referring again to the Day-book, we find that Cash 
$2,000 was deposited to our credit in the Bank. We debit 
the Bank because the money has been placed there to our 
















22 


massey’s modern book-keeping. 


credit. Tarn immediately to paragraph 32 and commit to 
memory the rule for journalizing Bank Account. We credit 
cash because it goes out of our possession. When com¬ 
pleted, this Journal entry will stand thus : 


1 (Name of) Bank, 

II 2000 | 

|| 

To Cash, 

II 1 

II 2000 | 


Now place a check-mark opposite the second fact in the 
Day-book to show that the same has been journalized. 

53. Reading the next transaction in the Day-book, we 
find that books , etc., were bought for office use, and rent 
was paid by check. The sum of these two items is to be 
charged to Expense Account. Turn immediately to para¬ 
graph 31 and commit to memory the rule for journalizing 
Expense Account. We credit the Bank, because a check 
was drawn upon it. When completed, the entry will stand 
thus: 


| Expense, 

II ^ 1 

| 

1 I To [name of) Bank , 

II 1 

55 


Next place a check-mark opposite the third fact in the 
Day-book, to show that this transaction has been journal¬ 
ized. 

54. Referring again to the Day-book, we find that Mer¬ 
chandise to the value of $300 was bought from R. W. 
Massey & Co. (or night wholesale house), and a check was 
given in payment therefor. In this entry, we debit Mer¬ 
chandise $300, because it costs us this amount. Turn 
immediately to paragraph 23 and commit to memory the 
rule for journalizing Merchandise Account. We credit 
Bank because we have given a check for the Merchandise 
bought. The Journal entry will appear thus : 

| I Merchandise, |j 300 | II i 

To (name of) Bank , || I || 300 I 

Next place a check-mark opposite the transaction in the 
Day-book. 

55. The next transaction in the Day-book shows that 
Merchandise to the value of $360 was sold for cash. In 
this entry, we debit Cash because it was received into the 


massey’s modern book-keeping. 


28 


business, and credit Merchandise because it produced us 
value. The Journal entry will appear thus: 


1 Cash, 

II 360 1 


To Merchandise, 

II 1 

II 360 | 


Next place a check-mark opposite the fact in the Day¬ 
book. 

56. In the next Day-book entry we learn that Merchan¬ 
dise to the value of $36 was bought from the Southern 
Commission Co.,on account; that is, on credit- We debit 
Merchandise because it cost us value, not in money, but it 
puts us in their debt- We credit Southern Commission 
Co. $36, because we owe them this amount, which we are 
to pay in the future. Turn immediately to paragraph 26 
and commit to memory the rule for journalizing Personal 
Accounts. When completed, the entry will appear thus: 


j Merchandise, 

II 36 ! 


To Southern Com. Co., 

II 1 

II 36 1 


Next place a check-mark opposite the transaction in the 
Day-book. 

57. The student may continue journalizing in this 
manner (see completed Journal on page 37) until the 
bottom of the first Journal page is reached ; then he should 
add both money columns—first, from top to bottom, and 
then from bottom to top. If the sums of the two columns 
are the same, write the footings on the line below a red 
line. Now write the date of the next transaction at the 
top of the second page, omitting- the name of your city. 
The student may continue until the journalizing is com¬ 
pleted. 

Hand your Journal to your teacher, and if it meets his 
approval, you will be ready to post to your “Practice 
Ledger .” 


DIRECTIONS FOR POSTING. 

58. Before Proceeding 1 to post from the Journal to 
the Ledger, the student will commit to memory para¬ 
graphs 9 to 13, inclusive . 



24 


MASSEY S MODERN BOOK-KEEPING. 


59. Paging. The student should now number the 
pages in his Practice Journal and Practice Ledger from 
first to last page, consecutively. 

60. Opening Accounts. The Proprietor’s or Partners’ 
Accounts should, for convenience, always appear first in the 
Ledger. Where, for any reasons, it is desired not to make 
known the proprietor’s investment, this account may be 
omitted entirely from the Ledger, or kept in a separate 
book. The student may now write in a large, plain style 
of penmanship the Ledger titles, and index them. On page 
1, on the top blue line, about in middle of the page, write 
your name thus: 

(STUDENT’S NAME.) 


On page 2, open an account with Cash by writing a 
heading “Cash.” On page 3, write the name of your 
“Bank.” On page 4, write “Expense.” On page 5, write 
“Merchandise.” On page 6, write “Southern Commission 
Co.” On page 7, write ‘ ‘Amory Dexter & Co. ” On page 8, 
write “R. W. Massey & Co.,” or name of night wholesale 
house. On page 9, write “W. P. Gould.” Care should be 
taken not to abbreviate the Ledger titles. Now turn to 
the index and carefully record the names and pages where 
the accounts can be found. Thus: On M page, write 
“Merchandise 5;” on D page, write “Dexter, Amory, & Co., 
7,” etc. 

61. Posting. The first item in the Journal is Cash 
and it is debited. Turn to the “Cash” Account on page 
2 of your “Practice Ledger” and on the left side—that is, 
debit side write the month and day, in the date columns. 
Next place the year in which you are doing business 
above the date column. Next place the page of your“Prac- 





















massey’s modern book-keeping. 


25 


tice Journal” in the page column, and write the amount 
($2,000) in the money column, omitting cents. 

(See form of Ledger on page 39.) 

62. We have now posted the debit item, but we wish 
to show in the Journal that it has been posted. This is 
done by placing the Ledger page opposite the word “Cash” 
in the Journal. This process is called post-marking 1 . 

63. The next item in the Journal is your own name 
and is credited. Turn to your account on page 1, and 
since it is credited in the Journal we must make the entry 
upon the right side—that is, credit side—in the Ledger. 
Write first the month and the day (with the year written 
above). Then in the page column place the page of the 
Journal and write the amount ($2,000) in the money col¬ 
umn, omitting cents as before. Now post-mark the 
entry by placing the page of your Ledger in the Journal, 
opposite your name. 

64. The next Journal entry says that Bank is debited, 
and hence, turn to page 3 in your Ledger, and on the 
debit side write the year, month and day as before 
directed, placing the amount ($2,000) in the money 
column. Next post-mark the entry by placing the page 
of the Ledger opposite name of “Bank” in the Journal. 
The credit item of this entry is “Cash,” and hence, turn 
to the “Cash” Account in your Ledger; on the credit side 
write date in month and day columns. In the page column 
place page number of Journal and place amount ($2,000) 
in money column. Next post-mark the entry by placing 
the page of the Ledger opposite the word “Cash” in the 
Journal. 

65. The third Journal entry is “Expense” to “Bank,” 
$55. Expense is debited, hence turn to the Expense 
Account on page 4 of the Ledger and on the debit side 
write the year, month and day in the date columns. 
Place the page of Journal in page column and extend the 
amount ($55) to the money column. The credit item of 
this is Bank, hence turn to Bank Account in your Ledger 
and on the credit side write date in proper columns, plac- 


26 


massey’s modern book-keeping. 


ing the Journal page in the page column and extending 
the amount ($55) to the money column. Next post-mark 
the entries in the Journal by placing the pages of Expense 
and Bank Accounts opposite their names in the Journal. 

66. The student may now follow the order of posting as 
just outlined, exercising- great care to get the items on 
the correct side in the Ledger. 


DIRECTIONS FOR MAKING TRIAL-BALANCE AND 
BALANCE-SHEET. 

67. Having finished posting, submit the work to your 
teacher for approval. Then turn to “Cash” Account; add 
the money column of the debit side, and write the sum in 
small pencil figures under the last amount recorded on 
that side of the account. (See your teacher if you need 
additional information.) Write the pencil figures close 
to the line, directly under last amount. Use a sharp 
pencil for this purpose, making the figures small and 
light. Foot the money column of the credit side same 
as debit side. Foot the remaining accounts in the same 
manner. 

68. This being done, take a Trial-balance of the 
Ledger. Turn to your Trial-balance book and write, at 
the top on the first page, Set One (and date.) Write the 
names of the accounts in the order in which they appear 
on the Ledger, extending the debit amounts into the debit 
column, and the credit amounts into the credit column. 
(For form of Trial-balance, see page41.) Now add the 
debit and credit columns, and if they agree you may pro¬ 
ceed with the loss and gain, and resource and liability 
columns, which constitute the completed Balance-sheet. 
(For illustration, see Balance-sheet on page 41.) Before 
proceeding further, however, the student should commit 
to memory paragraphs 15 to 19, inclusive. 



massey’s modern book-keeping. 


27 


LOSS AND GAIN COLUMNS. 

69. By referring to the Trial-balance, you will find 
Expense is the first Loss and Gain Account in the Ledger- 
The value in the left—that is, cost side—is $55, from 
which there was no visible return; therefore, there is a 
loss of $55, because the left side of an account that be¬ 
longs to the Loss and Gain class, is the cost side. Extend 
into the “Loss Column” opposite the word “Expense,” the 
amount $55. 

70. The next account belonging to this class is 

Merchandise. 

The footing on the right sideshows that the value of the 
Merchandise sales is $568.23. From the inventory* 
written in the Day-book, it is found that the value of 
Merchandise on hand is $135.80. Adding the value of the 
sales to the Merchandise on hand, gives the amount 
$704.03. Subtract from this amount the total cost, 
$550.85, and there is left the gain $153.18. Extend the 
gain on Merchandise, $153.18, into the “Gain Column” 
opposite the word “Merchandise.” 

71. The next step is to foot up the columns of Loss 
and Gain. As the total gains are larger than the total 
losses write in red ink, “Net Gain $98.18,” extending the 
figures into the Loss Column. To prove the correctness of 
the calculation, add the two columns to see if the totals 
are the same. Next draw a single red line under the 
Loss and Gain Columns, above the footings, and double 
red lines under the footings. 

72. Present Worth. When the amount gained or 
lost is found, the next step is to ascertain what you are 
worth. This may be done in two ways: First, if the 
amount gained ($98.18) during the first set be added to 
the amount invested ($2,000), it will show what you are 
worth at the end of the set ($2,098.18). The second 
method is to subtract the total liabilities from the total 
resources, and the difference will be the proprietor’s 
“Present Worth.” If the liabilities are larger, we are 
insolvent, i. e., we owe more than we are worth. 


28 


massey’s modern book-keeping. 


RESOURCE AND LIABILITY COLUMNS. 

73. All Resources should be placed in the left-hand 
column, because if the left side of an account belonging 
to the Resource and Liability class is the larger, it shows 
that more has been received than has been given out, 
leaving something on hand that can be turned into money, 
or it shows debtsowing to us, and is, therefore, a Resource. 
All Liabilities should be placed in the right-hand column, 
because if the right side of an account of the Resource 
and Liability class is the larger, it shows a debt we owe, 
and is, therefore, a Liability. Inventories are placed in 
the columns to which they belong—that is, if they show a 
Resource, they will be placed in the column with the other 
Resources ; if they show a Liability, they will be placed in 
the column with the other Liabilities; always, however, in 
red ink. 

74. In the Trial-balance, the first account belonging 
to the Resource and Liability class is 

Cash. 

From the Trial-balance it is found that the amount of 

Cash received (Dr.) was.$2,890.60 

Cash paid out (Cr.) was.$2,000.00 

Leaving an amount of cash on hand,- 

A Resource of. $ 390.60 

Which amount extend into the Resource Column. 

75. The next account belonging to the Resource and 
Liability class is 

(-) Bank. 

From the Trial-balance it is found that the amount of 


Cash deposited (Dr.) was.$2,000.00 

Amount of checks given (Cr.) was.$ 415.60 

Leaving in Bank a net deposit,- 

A Resource of.$1,584.40 


Which amount extend into the Resource Column. 











MASSEY 8 MODERN BOOK-KEEPING. 


29 


Merchandise Inventory. 

76. In the Day-book, page 86, it is found that the 
value of the Merchandise on hand is $135.80. This is a 
Resource and is written in red ink in the Resource 
Column. 

Southern Commission Co. 

77. From this account it is found that 


We bought of them on account (Cr.).$111.00 

We paid them on account (Dr.).$ 25.00 

The difference, what we owe them,- 

A Liability of.$ 86.00 


Which extend into the Liability Column. 

Amory Dexter & Co. 

78. From this account in the Trial-balance it is 
learned that 

We sold them on account (Dr.).$202.63. 

We received from them on account (Cr.) $ 55.00 

The difference, what they owe us, - 

A Resource of...$147.63. 

Which amount is extended into the Resource Column. 

R. W. Massey & Co. 

79. From this account in the Trial-balance it is 
learned that 

We sold them on account (Dr.) nothing. 

We bought of them on account (Cr.) Mdse. $3.00 

This amount shows what we owe them, - 

A Liability of.$3.00 

Which amount is extended into the Liability Column. 

W. P. Gould. 

80. From this account in the Trial-balance it is learned 
that we owe him $71.25, which is a Liability. Extend into 
the Liability Column the amount ($71.25), as we did the 
preceding entry. 











80 


massey’s modern book-keeping. 


81. Adding the two columns, it will be found that the 


Total Resources are.$2,258.48. 

Total Liabilities are.$ 160.25. 


The difference (our Present Worth) is $2,098.18. 

This Present Worth, found by subtracting the total 
Liabilities from the total Resources, agrees with the Present 
Worth found by adding the net gain to the net investment 
in the statement of losses and gains, and proves the first 
statement. Write in red ink “Present Worth” and ex¬ 
tend the amount ($2,098.18) into the Liability Column, 
which will, when added, equal or balance the Resource 
Column. Rule single line across Resource and Liability 
Columns, below the Present Worth ; foot the columns, then 
rule double lines across the same columns. 

82. The student has now learned that a Balance-sheet 
is a condensed statement designed to show at a glance, 
all facts, in general, relating to the financial condition of 
the business. Having completed his Balance-sheet, the 
book-keeper lays the same upon the proprietor’s desk for 
his inspection. By comparing the Balance-sheet with 
former Balance-sheets, he sees clearly and accurately the 
progress and tendency of the business. 

The next step is 

CLOSING THE LEDGER ACCOUNTS. 

83. In actual business, the accounts in the Ledger are 
closed but once or twice a year, and then only the accounts 
showing losses and gains, as the closing of these accounts 
is all that is necessary to show in the Ledger the gains 
and losses and the present worth of the proprietor. In 
these sets the accounts are closed often to give the 
students drill in closing accounts. In the first set, how¬ 
ever, only the loss and gain accounts are closed. Ac¬ 
counts are closed for the purpose of showing in a single 
amount in each account, the gain or loss, or the resource 
or liability it represents in itself. 





massey’s modern book-keeping. 


31 


LOSS AND GAIN ACCOUNT. 

84. On page 10 of our Ledger we open an account 
with Loss and Gain. Under this account, we collect all 
Losses and Gains, taken from the various accounts as they 
are closed. The Losses are collected on the debit side, 
and the Gains on the credit side. After all Losses and 
Gains are collected under the “Loss and Gain Account,” 
the difference between the two sides is carried to the 
Proprietor’s Account. If the credit side of the “Loss 
and Gain Account” is larger, the difference shows the Net 
Gain which should be carried to the credit side of the 
Proprietor’s Account. If the debit side is the larger, the 
difference shows the Net Loss, which should be carried to 
the debit side of the Proprietor’s Account. 

85. Merchandise Account is closed by writing in red 
ink on credit side on first vacant line, Date, Inventory 
$135.80, and writing in red ink on debit side, the amount 
of the gain on this account, which is $153.18. (See Mer¬ 
chandise Account closed and ruled on page 42.) 

86. Expense Account is closed by writing in red ink 
on the credit side on first line the date in the date column, 
the word “Loss” in the explanation column, the page of 
the “Loss and Gain Account” in the page column and the 
amount ($55) in the credit amount column. 

87. In ruling 1 an account, draw the red line directly 
under the blue line. In the double ruling, draw the lines 
as close together as possible not having them run together. 
Rule on the same blue line on both sides of the account. 

88. Transferring 1 Red Ink Entries. First, transfer the 
gain to the credit side of the Loss and Gain Account on 
page 10. Write in black ink, Date, Merchandise $153.18 
(enter in page column, the page of Merchandise Account, 
which is 5). Next return to the Merchandise Account and 
put the page of Loss and Gain Account opposite the word 
“Gain” in the page column. Now turn to the Expense 
Account on page 4, and you will find a red ink entry of $55, 
which is to be transferred to the Loss and Gain account. 


32 


massey’s modern book-keeping. 


Under this account on page 10 on the debit side, write in 
black ink, Date, Expense $55 (enter in page column, the 
page of Expense Account). The Loss and Gain Account is 
now ready to be closed. Write in red ink on debit side, 
Date, Net gain $98.18, writing page of Proprietor’s Account 
in page column. Transfer in black ink the amount 
($98.18) to the credit side of the Proprietor’s Account, 
which credits him for his net gain. On debit side of 
Proprietor’s Account, write in red ink, Date, Present 
Worth $2098.18. Rule all the Ledger Accounts now, in red 
ink, then insert all total footings in black ink, after which 
bring down below the ruling on the opposite side all 
resource and liability excesses. 

89. Second Trial-balance. To be sure that the 
Ledger remains in balance after it has been closed, it is 
well to make a second Trial-balance. This is especially 
important for beginners, and, if faithfully observed, 
will be the means of saving 1 much trouble and annoy¬ 
ance. 

The second Trial-balance consists simply in adding all 
the debits and credits as they appear on the Ledger after 
the Ledger has been closed. 

90. Good Books. Having finished closing your 
“Practice Ledger,” hand it to your teacher for examina¬ 
tion. If approved, carefully copy into your “Good 
Ledger.” The student should take great pains in doing 
this work, holding a blotter under his hand and doing the 
copying in an absolutely neat manner. Remember that 
neatness is essential to success as an accountant. The 
“Practice Journal” should also be copied into the “Good 
Journal.” 

The student should now carefully study the following 


massey’s modern book-keeping. 


REVIEW QUESTIONS. 

1. What is Book-keeping ? 2. What is a Business Transaction? 
3. Give definition of Value. 4. Into how many classes is Book¬ 
keeping divided, and what are they ? 5. In Single Entry, what 
kind of accounts are kept? 5. In Double Entry, what kind of 
accounts are kept? 6. Explain the use of the Day-book. 7. 
The Journal. 9. The Ledger. 8. What is Journalizing? 10. 
What is Posting ? 11. What is an Account? 12. Which is the 

Debit side, and which is the Credit side of an account ? 13. How 

are debtor and creditor abbreviated ? 14. Give brief rule for 

Journalizing. 15. What is a Trial-balance ? Does the Trial-bal¬ 
ance prove the work correct ? Why not ? How would you proceed 
to take a Trial-balance ? What should be done when the footings 
of the Trial-balance are not equal ? 16. Into how many general 
classes are accounts divided ? What does each show ? 17. What 

are Resources ? What Liabilities ? 18. When does an account 
show a Loss? When a Gain? When a Resource? When a 
Liability ? 19. What is abatement and how made? What does 
it exhibit ? In what columns are Inventories entered ? 20. Why 

is an account closed ? 21. How are Personal Accounts closed ? 

How are Loss and Gain Accounts closed ? 22. Ruling should be 

done in what color of ink ? 23. For what is Merchandise debited? 

For what credited ? What does the difference between the Debit 
and Credit sides show ? When a portion of the goods remain 
unsold, what must be done to find the gain or loss ? When does 
Merchandise Account show a loss ? When a gain ? 24. What is 

an Inventory and how found ? Does an Inventory represent a 
a resource or a liability? 25. When is cash debited? When 
credited ? What is considered money? What does the differ¬ 
ence between the sides of the Cash Account show? Is cash on 
hand a resource or a liability ? Which side of Cash Account 
must be greater when there is any difference ? Why ? 26. When 

are persons debited? When credited? When is a Personal Account 
a resource? When a liability 31. For what is Expense deb¬ 
ited ? For what credited ? What does Expense Account gener- 
allv show ? What is charged under the title Expense ? 32. What 

is a Ledger Bank Account? When is Bank debited? When 
credited ? 33. For what is the Proprietor credited ? For what is 

he debited? What is the difference between the sides of the Pro¬ 
prietor’s Account at commencing business called ? What title is 
sometimes used instead of the proprietor’s name ? 34. In what 

manner should Invoices be filed? 35. What is a Receipt? Why 

should it be preserved ? 38. What is meant by checking invoices. 

40 What is a Bank ? 41. What is Money ? 42. Explain the man- 


34 


Massey's modern book-keeping. 


ner of opening a Bank Account. 43. How should signatures to 
checks be written ? 44. What is a Deposit Slip and how used ? 
45. What is a Pass-book ? 46. What is a Check ? 47. What is 
meant by Overdraft ? 


Miscellaneous Questions. 

How is an Inventory found, and at what price are the goods 
estimated? What is the object of -making a Balance-sheet? 
How is the Proprietor’s Present Worth found? How can the 
Present Worth be proved ? When the losses of a business exceed 
the gains, what is the difference called ? In such cases how is the 
Present Worth found ? When is the Proprietor said to be insol¬ 
vent? When it is desired to make the Proprietor’s Account ex¬ 
hibit the Present Worth, what is it necessary to do ? Why is it 
not necessary to close all accounts in the Ledger ? What is the 
first step to take in closing the accounts that show the losses and 
gains? How is Merchandise Account closed? How is the Ex¬ 
pense Account closed ? How is Loss and Gain Account closed ? 
How is the Proprietor’s Account closed ? What does this ac¬ 
count then exhibit ? How long will it continue to exhibit the 
Present Worth, and why ? 




massey’s modern book-keeping. 


85 


DAY-BOOK, SET ONE. 

Montgomery, Ala., February 1, 1896, 


( Write your name here) began a Retail 
Grocery business. Invested Cash, 

2 

Deposited in 

(Name of Bank), Cash , 

3 

Gave check for 

Rent, one month from date, 

Office books and stationery, 

4 

Bought from R. W. Massey & Co., Ch'k, 
100 Bbls. Family Flour @ 3.00 

Invoice No. 1. 

5 

Sold (Teacher’s name), Cash, 

90 Bbls. Family Flour @ 4.00 

6 


2000 


2000 


35 

20 


55 


300 


360 


Bought of Southern Com. Co., on acc’t, 
10 Cases, 360 doz., Eggs @ .10 

1 

Sold Amory Dexter & Co., onacc't, 

5 Cases , 180 doz., Eggs @15 

8 

j Bought of J. A. Power & Co., Check, 
125 Lbs ., Fancy Coffee @ .20 
1 Box, 25 lbs., XXX Crackers, @.06 
1 Box, 35 lbs., Cheese , @ .13 

9 


25 

1 50 

4 55 


36 

27 


31 


05 


Sold to W. P. Gould , Cash, 

1 Box, 35 lbs., Cheese, @ .16 

10 

Bought of Southern Com. Co., on acc't , 
2- Bbls., 500 lbs., Stick Candy @ .12 

2 Buckets, 100 lbs., F'cy “ @ .15 

11 

Sold Amory Dexter & Co., on acc't , 

1 Sack, 125 lbs., Fancy Coffee @.25 
10 Bbls. Fancy Flour @ 3.50 


60 

15 


31 

35 


25 


5 60 


75 


66 25 















36 massey’s modern book-keeping. 

DAY-BOOK, SET ONE. 

2 February 12 , 1896. 


Paid Southern Com. Co., on account 
Check No. 4. 


13 

Amory Dexter & Co., Cash 
Paid us on account, 

14 

Bought of R. W. Massey & Co., on acc’t, 
2 Boxes, 50 lbs., Crackers @ .06 

15 

Bought of Amory Dexter & Co.,on acc’t, 
10 Bbls. Family Flour @ 3.00 

16 


Bought of W. P. Gould, on account, 

2 Sacks, 250 lbs., F’cy Coffee @.20 
1 Sack, 125 lbs., Choice “ @.17 

17 


50 


21 


75 


Bought of Southern Com. Co., Check, 

1 Box, 35 lbs , Cheese @ 13 

18 

Sold Amory Dexter & Co., on account, 
3 B’xs., 75 lbs., XXX Cr'k’rs @. 124 

2 Bbls., 500 lbs., Slick Candy @ .20 

Inventory. 


9 

100 


38 


2 Buckets, 100 lbs., Fancy Candy @ .12 

12 

2 Sacks, 250 lbs.. Fancy Coffee 

@ .20 

50 

1 Sack, 125 lbs., Choice Coffee 

@ .17 

21 

10 Bbls. Family Flour 

@ 3.00 

30 

1 Box, 35 lbs., Cheese 

@ .13 

4 

5 Cases, 180 doz., Eggs 

@ .10 

18 


25 

55 


25 

25 

3 

30 


71 25 

4 55 


109 


38 


135 


80 


Note to Student.—If your Inventory does not agree with 
the above, report the fact to your teacher. 
















MASSEY S MODERN BOOK-KEEPING. 


37 


JOURNAL, SET ONE. 

Montgomery, Ala., February 1,1896. 


2 

Cash, 

2000 



1 

To ( Student's name), 



2000 


2 




3 

(Name of) Bank, 

2000 



2 

To Cash, 



2000 


3 




4 

Expense, 

55 



3 

To (name of) Bank, 



55 


4 




5 

Merchandise, 

300 



3 

To (name of) Bank, 



300 


5 




2 

Cash 

360 



5 

To Merchandise, 



360 


6 




5 

Merchandise, 

36 



6 

To Southern Com. Co., 



36 


7 




7 

Amory Dexter & Co., 

27 



5 

To Merchandise, 



27 


8 




5 

Merchandise, 

31 

05 


3 

To (name of) Bank, 



31 


9 




2 

Cash, 

5 

60 


5 

To Merchandise, 



5 



4814- 

65— 

4814 





























■3 tO_05 05 Ot —T 05 Ol 


88 


massey’s modern book-keeping. 


JOURNAL, SET ONE. 

February 10, 1896. 


Merchandise, 


To Southern Com. Co., 


11 


Amory Dexter & Co., 

To Merchandise, 

12 

Southern Com. Co., 

To (name of) Bank, 


Cash, 


Merchandise, 


Merchandise, 


5 Merchandise, 
9 


13 

To Amory Dexter & Co. 

14 

To R. W. Massey & Co., 

15 

To Amory Dexter tfe Co., 

16 

To W. P. Gould, 

17 


75 


66 


25 


25 


25 


Merchandise, 

To (name of) Bank, 

18 

Amory Dexter & Co., 

To Merchandise. 


30 


71 


109 


409 


25 


55 


38 


43 


75 


66 25 


25 


25 


30 


71 


109 


409 


25 


55 


38 

43 
























massey’s modern book-keeping. 


39 


1896 


1896 


Feb. 1 
“ 5 

“ 9 

“ 13 


1896 


Feb. 2 


1896 


Feb. 


1896 


FORM OF LEDGER, SET ONE. 

STUDENT’S NAME. 

1896 


Feb. 1 


1 2000 


CASH. 

1896 


2000 


Feb. 

360 



5 

60 


25 



2330 

60 



(NAME OF) BANK. 
1896 


1 2000 


! 1 

2000 


Feb. 

3 




u 

4 




u 

8 




u 

12 




i u 

17 


EXPENSE. 

1896 


55 


MERCHANDISE. 

1896 


55 i 
300 

31 05 

25 
4 

415 


55 


Feb. 

4 

1 

300 


Feb. 

5 

1 

360 


<( 

6 

1 

36 


(< 

7 

1 

27 


u 

8 

1 

31 

05 

u 

9 

1 

5 

60 

u 

10 

2 

75 


u 

11 

2 

66 

25 

u 

14 

2 

3 


u 

18 

2 

109 

38 

u 

15 

2 

30 





568 

23 

t< 

16 

2 

71 

25 






u 

17 

2 

4 

55 









550 

85 









































































40 


MASSEY’S MODERN BOOK-KEEPING. 


FORM OF LEDGER, SET ONE. 

SOUTHERN COMMISSION CO. 


1896. 1896. 6 


Feb. 

12 


2 

25 


Feb. 6 

1 

36 







“ I 10 

2 

75 




1 



1 1 

- 

ill 


AMORY DEXTER & CO. 



R. W. MASSEY & CO. 

1896 1896 8 


Feb. 


14 


1896 


W. P. GOULD. 
1896 


9 


1 


Feb. 


16 



71 


25 


LOSS AND GAIN. 


1896 , 


1896 , 


10 









































































massey’s modern book-keeping. 

TRIAL-BALANCE, SET ONE. 


41 


February 18th, 1896. 


1 

Student’s name, 


2000 


2 

Cash, 

2390 60 

2000 


3 

(Name of) Bank, 

2000 

415 

60 

4 

Expense, 

55 



5 

Merchandise, 

550 85 

i 568 

23 

6 

Southern Commission Co., 

25 

111 


7 

Amory Dexter & Co., 

202 63 

55 


8 

R. W. Massey & Co., 


3 


9 

W. P. Gould, 


71 

25 



5224'08 

5224! 

08 


BALANCE-SHEET, SET ONE. 

February 18th , 1896. 




Dr. 

Cr. 

Loss. 

Gain. 

Reso’rce 

Liability. 

1 

2 

3 

4 

5 

6 

7 

8 
9 

Student, 

Cash, 

Bank, 

Expense, 
Merchandise, 
So. Com. Co., 

A.Dexter & Co. 
Massey & Co., 
W. P. Gould, 

2390 

2000 

55 

550 

25 

202 

60 

85 

63 

2000 

2000 

415 

568 

111 

55 

3 

71 

60 

23 

25 

55 


153 

18 

390 

1584 

135 

147 

60 

40 

80 

63 

86 

3 

71 

25 



5224 

08 

5224 

08 

55 


153 

18 

2258 

43 

160 

25 


Net gain, 





98 

18 

153 

18 






Net investm’nt 
Net gain, 

2000 

98 




153 

18 






18 












Present worth, 

2098 

18 









2098 

18 











2258 

43 

2258 

43 

































































42 


massey’s modern book-keeping. 

Note.—The following forms show the Proprietor’s Account 
and the Loss and Gain Accounts after they have been closed and 
ruled up. 


STUDENT. 




MERCHANDISE. 

1896 1896 


Feb. 

4 


1 

1300 


Feb. 

5 


1 | 

60 


U 

6 


! 1 ' 

! 36 


<< 

7 


1 

; 27 


U 

8 


1 

31 

05 

1 u 

9 


1 

5 

60 

U 

10 


1 

75 


u 

11 


1 

66 

25 

U 

14 


| 2 

3 


(( 

18 


2 

109 

38 

U 

15 


2 

30 


Feb. 

18 

Inventory, 


135 

80 

t < 

16 


2 

71 

25 







U 

Feb. 

\l 

Gain, 

il 

153 

55 

18 








—- : 



704 

03 1 





704 

03 


LOSS AND GAIN. 
1896 _ 1896 


Feb. 

! 18 

Expense, 

I 4 

55 


1 

Feb. 

18 

Mdse., 

5 

153 

18 

Feb. 

18 

Net gain, 

i 

98 

18 











53 

18 





153 

18 





























































































Form of Check-Book. 


43 


\ 


massey’s modern book-keeping. 









































44 


massey’s modern book-keeping. 


SUGGESTIONS TO STUDENTS. 

The purpose of the exercises on the preceding pages 
has been to lay before you, in as simple manner as possi¬ 
ble, the foundation principles of book-keeping. The 
object of the work in the following pages is to train you 
in making a practical application of these principles. 
Before beginning this work, there are, however, a few 
things to which you should give careful consideration if 
you wish to succeed. 

The first to which we desire to direct your attention, is 
your 


91. PENMANSHIP. 

This is a matter of great importance, as you will realize 
after leaving school, if you do not before. Your work 
may be accurate and neat—free from blots and scratches 
—but if your writing is poor, it will always prove a 
hindrance to you. 

Good penmanship is a matter of primary consideration 
with business men when they wish to employ a book¬ 
keeper or clerk for any position in which writing is 
required. Plain, rapid business writing is in demand to¬ 
day as never before. Study carefully the writing given by 
your teacher, and strive to acquire a similar style. Prac¬ 
tice writing a great deal with a view to improve your 
penmanship, and in your book-keeping work always do 
your best. 

It is not our purpose, in this place, to give specific 
instructions on how to acquire a good handwriting; but 
the following negative hints, if observed, will do much to 
help correct the more common faults in writing: 

Don’t spoil your writing with flourishes. The plainest 
writing looks the neatest. 

Don’t attempt to shade your writing. 

Don’t make the loop letters too long. Long loops give 
writing a tangled appearance. Short looped writing looks 
neater and is more easily read. 


MASSEY S MODERN BOOK-KEEPING. 


45 


Don’t slant your writing too much. This is one of the 
most common faults with young writers. The more slant 
given to writing the more space it takes up, and the more 
difficult it is to read. 

Don’t be careless in making figures. A poorly made 
letter or a badly written word can generally be made out 
from the context—that is, from what precedes or follows it; 
but not so with figures. A business man may be willing, 
at times, to guess at what is meant by a poorly written 
word, but he will not risk guessing at a poorly made 
figure. 

Don’t do anything carelessly. Always do your best. 
Every time you do this you are making progress; but any 
effort that is not your best causes you to lose ground—to 
go backward in your work. 


92. AVOIDING ERRORS. 

In writing the following sets, strive to keep the books 
free from errors: 

1. Do your thinking before a fact is recorded in the 
books, not after. More mistakes are made through care¬ 
lessness than ignorance. 

2. Don’t hurry. Work as rapidly as possible to do 
good work. Progress is not measured by what has been 
gone over, but by what has been learned. 

3. Work systematically. Follow the order of work 
given at the beginning of the first set. Study it until 
thoroughly familiar with it. 

4. Be accurate. Do not put units under tens, hundreds 
under tens, dollars in the cent column, etc., when writing 
figures. 

5. Be neat. No careless work should be put on either 
the loose papers or in your books. 

6 . Concentrate your mind on the work in hand. 

—Practical Book-keeping. 


46 


massey’s modern book-keeping. 


93. RULES FOR FINDING ERRORS. 

1. Add the Trial-balance from top to bottom, and from 
bottom to top. If the results are the same by both addi¬ 
tions, go over the addition in the Ledger Accounts in the 
same manner, and see that the footings are correctly car¬ 
ried into the Trial-balance. If the results vary in the addi¬ 
tions go over and over them until each addition brings 
the same result. 

2 . Review the amounts carried into the money columns 
of the Journal and see that the debits and credits are 
equal for each entry. 

3. Find the exact difference between the two sides of 
the Trial-balance and look for that amount in the Journal, 
or whatever books have been posted from, as an amount 
may have been omitted from the Ledger in posting. 

4. If the difference can be divided by 2, look for half the 
amount, as an amount may have been posted to the wrong 
side of the Ledger. 

5. Open the Journal and Ledger, and go over the posting 
from the beginning, observing that each amount debited 
or credited in the Journal is carried to the debit or credit 
of the proper account in the Ledger, placing a check-mark 
(l/) before each amount in the Journal and Ledger, as it 
is found correct. 

As the debits and credits in the Journal are equal, the 
Ledger must balance, if no mistakes have been made in 
posting or adding. 

94. CORRECTING ERRORS. 

Errors in the Day-book. If a mistake is made in the 
Day-book, or any other book of original entry, do not 
erase, but make a correct entry in some other part of the 
nook and mark the incorrect entry “Void,” and give page 
of corrected entry, if it does not immediately follow. 

Errors in Journal and Ledger. If an error is made in 
the Journal or Ledger, draw a red line through it and 
write the correct entry above it. 


massey’s modern book-keeping. 


47 


EXAMINATION RECORD, SET ONE. 

Datfe.....Teacher. 

Questions.Day-book.Practice Journal.. 

Practice Ledger.Good Journal.Good Ledger 

Balance-sheet.Second Trial-balance. 

Re-Work. 

Copy. 

Business Papers. 


Cash Account. 

Dr. side, $. 

Cr. side, $. 

Balance, $. 

Present this amount of 
cash to your teacher. 


Date of commencing set 


Bank Account. 

Last Balance, $. 

Amt. Deposits, $. 

Total Credit, $. 

Total Checks, $. 

Balance,. $. 

Have your Bank Pass¬ 
book balanced,which must 
agree with above. See 
Note A. 

...Date finished. 


Total number of days. 

Note A.—If all of your checks have not been presented to the 
Bank for payment, it will be necessary for you to make on a sheet 
of paper the following statement, which present with your books : 


Bank Account Test. 

Bank Balance (See Bank Pass-book.) 

Check-book Balance. 

Difference. 

Checks not cashed: 

No. 

No. 

No. 

No. 

No. 

Total checks outstanding. 









































RICHARD W. MASSEY, 

President Massey’s Chain of Business Colleges; Expert 
Accountant and Ex-President Southern 
Book-keepers’ Association. 




i SET TWO. I 

ORDER OF WORK. 

First.—Thoroughly memorize paragraphs 95 to 105, 
inclusive. Read carefully “ Special Information,” page 
50. F 8 

Second.—Journalize Practice Work on pages 54, 55 , 
56 and 57, and submit work to your teacher for approval. 

Third.—Carry out the transactions of Second Set and 
record in Day-book, carefully entering all Bills Receivable 
and Bills Payable in the Bill-book. 

Fourth.—Journalize the actual transactions. 

Fifth.—Post Journal entries to “ Practice Ledger.” 

Sixth. Make Balance-sheet and close Practice Ledger. 

Seventh.—Submit ‘‘Practice Ledger” with Balance- 
sheet to your teacher for examination. 

Eighth.—Copy Practice Ledger into Good Ledger and 
Practice Journal into Good Journal. 

Ninth.—Commit to memory questions on page 60. 

Tenth.—Submit all of your work to your teacher for 
your final grade. 


50 


massey’s modern book-keeping. 


SPECIAL INFORMATION. 

Beginning with Set Two, the student may buy and sell 
such articles of merchandise, as, in his judgment, can be 
dealt in to an advantage. 

Use market quotations in buying and selling. 

Loud talking or boisterous conduct of any kind will not 
be allowed. 

Be prompt in your attendance. 

Do not buy or sell mutilated cards. 

All transactions in book must be made, and such addi¬ 
tional ones as may be necessary, to close up the sets. 

Test your cash each day. If the cash balance is not cor¬ 
rect, it is positively necessary to find your error before 
proceeding. 

Confine your trading to the wholesale houses and your 
fellow-students. After the first set no trading is to be 
done with the teacher. 

Keep your Bill-book carefully written up and pay your 
notes at maturity. 

File carefully all papers and documents received, and 
hand to your teacher for examination at end of set. 

Make no purchase or sale for more than $500.00 in one 
transaction. 

Render statements to all who owe you at end of each set. 

Report to your teacher, at once, any trouble with the 
office departments. 

Have your Pass-book balanced at the end of each set. 

Whenever you receive from a student a statement of 
your account, carefully compare with your Ledger to 
ascertain whether it is correct. If correct, mark “O. K.’ 
and file away for reference. If the statement is not cor¬ 
rect, notify the person who sent it. 


massey’s modern book-keeping. 

' SET TWO. 


51 


EXPLANATIONS AND DEFINITIONS. 

95. The object of the second set is to give students 
additional practice in the book-keeper’s routine work, as 
well as to introduce two new accounts—Bills Payable and 
Bills Receivable. 

96. The books used are the Day-book, Journal, 
Ledger and Bill-book. 

97. A Bill-book is an auxiliary book, that is, a book 
used as an aid to the other, or principal books. The 
teacher will explain how to use it. 

98. Bills Receivable and Bills Payable. Two kinds 
of promises to pay are used in business, oral and written. 
Oral promises to pay were illustrated in Set One; while 
written promises to pay (consisting of notes), are ex¬ 
plained in this set. Accepted drafts are also written 
promises to pay and are treated as Bills Payable and 
Bills Receivable. They are fully explained in Set4. 

99. Promissory Notes. A Promissory Note is a writ¬ 

ten promise to pay unconditionally at some future time, 
a certain sum of money, usually at a certain place. Such 
promises are known as time and demand notes. Illustra¬ 
tion : : 

$Soo. Mobile, Ala., March 2, 189 4 

Ten days after date / promise to pay to the 

order of IV. N. Thilips, ... 

Three Hundred A", Dollars, 

value received. 

No. 49 Due 3,13, ’94. IV. Dean IVilson. 

In the note above, the person who signs his name to the 
note (Wilson) is called the Maker. The person to whom 
the money is to be paid (W. N. Philips) is called the 

Payee. 






52 


MASSEY’S MODERN BOOK-KEEPING. 


100. Indorsements. If W. N. Philips wished to sell 
the note to S. S. Hoover, he would order it paid to him by 
indorsing it (writing) on the left end of the back, as shown 
in illustration below: 



This is called an indorsement in full and makes the 
note payable to S. S. Hoover’s order only. 

101. Indorsement in Blank. If W. N. Philips had 
simply written his name on the left end of the back of the 
note, it could have been collected by any one who had it in 
his possession when due. It then would have been an 
indorsement in blank. 

Note.—In most States, notes and drafts are entitled to three 
days of grace. 

102. Bills Payable Account. Our written promises 
to pay are Bills Payable, and when we give them out, are 
placed on the credit side of that account in the Ledger. 
When we pay our notes, the amount thus paid is placed on 
the debit side of the account. If Bills Payable Account 
does not balance, the right hand side will always be the 
larger, as we can not pay more notes than we have given. 
The difference, if any, will always be a liability. For 
illustration, see the following form: 


BILLS PAYABLE. 

Our Written Promises to Pay Redeemed. Our Written Promises to Pay Given Out. 


July 


19 

25 


250 


July 

1 

550 



2 




3 


200 

600 

320 



















massey’s modern book-keeping. 


53 


Value of written promises given out.$1120.00 

Value of written promises redeemed. 800.00 

Value of our written promises unpaid, a liability of.$ 320.00 


103. Bills Receivable Account. Other persons’writ¬ 
ten promises to pay us are called Bills Receivable. When 
received, they are placed on the debit side of the Bills 
Receivable Account. When they are given out or a pay¬ 
ment made on them, the amount is placed on the credit 
side of the account. The difference, if any, shows a 
resource. Illustration: 


BILLS RECEIVABLE. 

Other Persons’ Written Promises Other Persons’ Written Promises 

to Pay Received. to Pay Given Out. 


July 


1 

3 

9 


200 


July 

14 

600 



21 

280 





200 

600 


Value of other persons’ written promises received. $1,080.00 

Value of other persons’ written promises given out. 800.00 

Value of the persons’ written promises on hand, a resource 

of .. $ 280.00 

This account will balance when all the promises of 
others have been disposed of, as they are always recorded 
at their face value. 

104. Ledger Heading. Write the address of each 
person with whom an account is opened in the Ledger, on 
the head line, in a small hand, a little to the right of the 
name, as shown below: 

W. A. Ross & Co ., 

Columbus , Ga. 


105. Special Directions: Strive to surpass your pre¬ 
vious work in neatness and accuracy. Apply to your 
teacher for the number of the price-list, which you are to 
use hereafter in all your Practice Journalizing. In actual 
transactions, use market quotations. Your teacher will 
allow you a special discount of 10% on all purchases of 



























54 


, massey’s modern book-keeping. 


-which you make from the wholesale house. This 

will enable you to sell this particular commodity to your 
fellow students at market quotations and still make a 
profit. Turn to paragraphs 20, 21, 27 and 28 and thorough¬ 
ly commit them to memory. The personal accounts, as 
well as the loss and gain accounts, will be closed in this 
and the following sets. Your teacher will explain how to 
close personal accounts. See paragraph 21, page 8. 

The student may now proceed to journalize the practice 
work on pages 54 to 57, which submit to your teacher, 
when completed, for approval. 


SET TWO. PRACTICE WORK. 


Note.—The following entries are intended to be a supple¬ 
mentary drill in journalizing and constitute no part of the actual 
transactions. They should, however, be carefully journalized in 
the “Practice Journal” and submitted for correction. Your 
teacher will examine this work, and if you understand the prin¬ 
ciples of journalizing thus involved, you should have no difficulty 
in journalizing the actual transactions of this set, as they are 
similar. 

(1) Gave W. B. Thomas a check for $75.00 in payment 
of rent of store one month. 

(2) Sold W. A. Davis & Sons, Chicago, cash: 

10 Boxes, 250 lbs., XXX Crackers, 

2 Sacks, 250 lbs., Choice Coffee, 

2 Bbls., 500 lbs., Stick Candy, 

5 Boxes, 300 lbs., Rice. 

Note.—Apply to your teacher for a price-list to be used by you 
in computing all the calculations in the practice work. 

(3) Sold Thomas & Hagood, on their note at 30 days: 

375 Lbs. Rice, 

135 Bbls. Fancy Flour, 

(4) Sold C. C. Clark, on account: 

375 Lbs. Stick Candy. 





massey’s modern book-keeping. 


55 


(5) Sold Boynton, Benedict & Co., on their demand 

note: %% 

75 Bbls. Irish Potatoes, 

155 Bbls. Sweet Potatoes. 

(6) Sold Kohn, Furchgott & Co., and received in pay¬ 
ment their fifteen days note for i, balance on account: 

165 Lbs. XXX Crackers, 

125 Lbs. Rice. 

(7) Bought from Cohn Bros., on my 60 days note, 
their favor, no interest: 

2500 Lbs. Choice Coffee, 

1785 Lbs. Fancy Coffee, 

1700 Lbs. XXX Crackers. 

(8) Bought from Weil Bros., on my demand note: 

150 Bbls. Fancy Flour. 

(9) Bought from Cooper, Deignan & Co., | cash, bal¬ 
ance on account: 

1500 Doz. Eggs, 

175 Lbs. Fancy Coffee, 

1700 Lbs. XXX Crackers, 

1500 Lbs Fancy Candy, 

1200 Lbs. Stick Candy. 

(10) Bought from J. J. Gilbert, | cash, balance on 
account: 

1500 Lbs. Choice Coffee. 

(11) Sold Glenn & Sons, £ cash, balance on account : 

120 Dozen Eggs. 

(12) Paid J. J. Gilbert, cash, for balance due on ac¬ 
count. 

(18) Sold Geo. M. Folger, i note, payable in thirty 
days, i on account, ^ cash: 

1500 Bbls. Fancy Flour. 

(14) Sold Ralph Coleman, on demand note: 

1857 Lbs. Fancy Coffee. 

175 Lbs. Choice Coffee. 

180 Doz. Eggs. 


56 


massey’s modern book-keeping. 


(15) Sold V. J. Pekor, on account: 

150 Lbs. Fancy Coffee, 

150 Doz. Eggs, 

600 Bbls. Irish Potatoes. 

(16) Sold C. C. Robinson, ^ cash, balance on account: 

100 Bbls. Fancy Flour. 

(17) Bought of, Clark & Davis, on account: 

200 Bbls. Family Flour. 

(18) SoJd Hopkins-Spencer Co., i cash, i fifteen days' 
note, balance on account: 

150 Bbls. Fancy Flour, 

195 Doz. Eggs. 

(19) Sold Glenn, Graham & Reynolds, on account: 

1800 Lbs. Rice. 

(20) Collected cash of Ralph Coleman for his demand 
note. 

(21) Paid Weil Bros. $5.00, to apply on note given to 
them in transaction No. 8. 

(22) Bought from Snider’s Sons, for cash : 

118 Lbs. Cheese, 

100 Doz. Eggs. 

(28) Bought from R.W. Massey & Co., on account: 

1000 Lbs. Rice, 

1700 Bbls. Irish Potatoes. 

(24) Bought from Bainerd & Armstrong, on account: 

17 Bbls. Fancy Flour, 

10 Bbls. Family Flour. 

(25) Gave Weil Bros, a check for the balance due on 
our note, given to them in transaction No. 8. 

(26) Gave R.W. Massey & Co., a check for the amount 
due them on account. 

(27) Sold Green & Sons, on account: 

125 Doz. Eggs. 

(28) Bought from Garrett Manufacturing Co., on 
account: 

125 Lbs. Fancy Candy. 

(29) Sold Parker Mercantile Co., on account: 

250 Lbs. Stick Candy. 


MASSEY'S MODERN BOOK-KEEPING. 


57 


(30) Exchanged notes with King Parker for mutual 
accommodation; each note for $100.00, and payable at 
bank in thirty days, without interest. 

(31) Bought from Montgomery Grocery Co., on ac¬ 
count: 

25 Bbls. Family Flour. 

(32) Gave Columbus Gas Co., check for gas and water 
bills, $10.00. 

(33) Sold A. & S. Maxwell, on account: 

25 Bbls. Fancy Flour. 


SPECIAL DIRECTIONS. 

We wish to impress upon the student the importance 
of accuracy. It matters not how much work is ac¬ 
complished, unless it be accurate, it is worse than useless. 
Speed has its value, but by the beginner should not be 
considered. It never pays to be in too much hurry. Haste 
is sure to cause errors which w r ill cost you far more to 
locate than the speed has profited you. 

Your first aim should be accuracy and neatness, and 
the speed will come with practice and experience. 

The beginner is too apt to underrate the value of sys¬ 
tem. System, in a great measure, is the key to success 
in business life. “Have a certain place for everything 
and keep everything in its place.” Do not let your papers 
and books be strewn upon the desk. Keep your merchan¬ 
dise well assorted in a box provided for that purpose, 
your cash, notes, receipts, etc., in their proper places, and 
you will find that you will' gain much in convenience 
and facility. 




58 


massey’s modern book-keeping. 


SET TWO. 

MEMORANDA FOR ACTUAL TRANSACTIONS. 

(19) Give check, $50.00, for one month’s rent. 

Note.—Hand to your teacher and enter on stub of check-book. 

(20) Make settlements for all open accounts, receiving 
and paying cash. 

(21) Sell Merchandise and receive in payment demand 
note (26.) 

Note.—Write bill and deliver with Merchandise. Enter note 
received in Bill-book. No. 26, as written at the end of the transac¬ 
tion, gives the. number of a corresponding transaction. The 
student need not follow the order of transactions as they are 
given, but all transactions must be performed. Place all notes in 
a large envelope, which label “Bills Receivable.” Place a check¬ 
mark (|/) after each transaction as soon as performed. 

(22) Sell Merchandise on account. (48) 

Note.—Always write bill and deliver with Merchandise. 

(23) Sell Merchandise, and receive in payment demand 
note. 

Note.—Follow directions given under transaction No. 22 

(24) Sell Merchandise, i note payable in five days, 
balance on account. (28) 

(25) Buy Merchandise and give in payment your note 
payable on demand. 

Note.—When you give a note, carefully fill out the stub of the 
note-book, also enter in Bill-book. Receive a bill which you 
will paste in “ Book of Invoices ” for future reference. Always 
preserve your Invoices. 

(26) Buy Merchandise, and give in payment, demand 
note. (21) 

(27) Sell Merchandise, \ cash, £ on account. 

(28) Buy Merchandise, note for -J-, balance on ac¬ 
count. (24) 

(29) Sell Merchandise, | cash, i on account. 

(30) Collect cash for one-half the value of Merchan¬ 
dise sold in transaction 22. 

Note.—Give receipt to apply on account. 



MASSEY'S MODERN BOOK-KEEPING. 


59 


(31) Sell Merchandise, and receive in payment demand 
note. (25) 

(32) Sell Merchandise on account. (34) 

(33) Sell Merchandise, cash, balance on account. 

(34) Buy Merchandise on account. (32) 

(35) Sell Merchandise on account. 

(36) Sell Merchandise, i cash, ± note, payable in thirty 
days. 

(37) Present demand note received in transaction No. 23, 
for payment. 

(38) Make a cash payment of $5.00 on your note given 
in transaction 26. 

Note.—See that the proper credit is given on the back of your 
note. 

(89) Buy Merchandise for cash. 

(40) Buy Merchandise from R. W. Massey & Co., (or 
night wholesale house) on account. 

Note.—The student should now lay in a supply of Merchan¬ 
dise of the kind on which he is entitled to a discount. See par¬ 
agraph 105. 

(41) Buy Merchandise on account. 

(42) Give check for the balance due on your note given 
in transaction No. 26, which is presented for payment. 

Note —When you pay your notes have them marked “paid,” and 
file them away in an envelope marked “Notes paid.” 

(43) Give R. W. Massey & Co., a check for the amount 
due them on account. 

(44) Sell Merchandise on account- (45) 

(45) Buy Merchandise on account. (44) 

(46) Sell Merchandise on account. 

(47) Wishing to borrow some money from the Bank, 
you exchange notes with your teacher for mutual accom¬ 
modation; each note for $100.00, bearing 6% interest and 
payable at the Bank in five days. Indorse the note 
which is in your favor and sell for its face value, receiving 
the amount in cash. 

(48) Buy Merchandise on account. (22) 


60 


massey’s modern book-keeping. 


(49) Give check for gas and water bills, $10.00. 

Note.—Write check in favor of and deliver to teacher. 

(50) Sell Merchandise on account. 

Note.—Having carried out the transactions and recorded them 
in his Day-Book, the student may now journalize and post to his 
“Practice Ledger.” Make Trial-balance and Balance-sheet. Close 
all accounts in “Practice Ledger,” render statements to all parties 
due you on account, and submit to your teacher for examination. 
If approved, carefully copy work in your “Good Ledger ” Have 
work graded and answer the following 

REVIEW QUESTIONS. 

95. What is the object of Set Two? 96. What books are 
used ? 97. What is a Bill-book ? 98. How many kinds of 

promises to pay are used in business ? What are they ? 99. What 
is a Promissory Note ? How many parties are there to a Promis¬ 
sory Note, and who are they ? Who is the Maker ? Who is the 
Payee? 100. What is an Indorsement? Who is an Indorser ? 
What is the purpose of writing the payee’s name upon the back 
of the note ? What is an Indorsement in full ? 101. What is an 
Indorsement in blank ? Are notes entitled to Days of Grace ? 
When is the maturity of a note ? 102. What are Bills Payable ? 
When you issue your note what do you credit ? When you re¬ 
deem your note what do you credit? If Bills Payable Account 
does not balance, which side will always be the larger ? Why ? 
This difference would be what ? 103. What are Bills Receivable ? 
When you receive another person’s note what do you debit? 
When you dispose of that note what do you credit ? Which side 
of the Bills Receivable Account will always be the larger if there 
is any difference ? Why ? 104. What is a Ledger Address ? 

How should it be written ? 105. Mention the Special Directions. 


massey’s modern book-keeping. 


61 


EXAMINATION RECORD, SET TWO. 


Date.Teacher. 

Questions.Day-book.Practice Journal. 

Practice Ledger..Good Journal.Good Ledger 

Balance-sheet.Second Trial-balance. 

Re-Work. 

Copy. 

Business Papers.Rill-book. 


Bills Receivable. 

Dr. side, $. 

Cr. side, $. 

Notes on hand, $. 

Cash Account. 

Dr. side, $. 

Cr. side, $. 

Balance, $. 

Present this amount of 
cash to your teacher. 


Bills Payable. 

Cr. side, $. 

Dr. side, $.. 

Notes outstanding, $. 

Bank Account. 

Last Balance, $. 

Amt. Deposits, $. 

Total Credit, $. 

Total Checks, $. 

Balance, - - - $. 

Have your Bank Pass¬ 
book balanced, which must 
agree with above. 


Date of commencing set.Date finished 

Total number of days. . 

Bank Account Test. 

Check-book Balance.. 

Checks not Cashed : 

No. No. 

No. No . Total, $. 

Bank Balance ------- $. 









































ANTfrctfT. xk 

| SET THREE/ 

VyyYyyYYVyywvvN/YVVVVVW 

?fp6 5 ti^ tiK jn\?n^ stp^/ n^ ?n^ jn's ?itwtn 3fr5 tta 

ORDER OF WORK. 

First.—Thoroughly memorize paragraphs 106 to 109, 
inclusive. 

Second.—Journalize practice work on page 64 and sub¬ 
mit work to your teacher for examination. 

Third.—Carry out the actual transactions of Set Three 
and record in Journal-Day-book, carefully entering all 
notes in the Bill-book. 

Fourth.—Journalize the actual transactions. 

Fifth.—Post Journal-Day-book to “Practice Ledger.” 

Sixth.—Make Balance-sheet and close the Ledger. 

Seventh.—Submit the Ledger to your teacher. 

Eighth.—Copy “ Practice Ledger ” into “ Good Ledger.” 

Ninth.—Recite to your teacher questions on page 63. 

Tenth.—Submit all your books to your teacher for his 
approval. 



massey’s modern book-keeping. 63 

SET THREE. EXPLANATIONS AND DEFINITIONS. 

106. The object of Set Three is to illustrate a Partner¬ 
ship business, giving instructions on Interests and Dis¬ 
count accounts, as well as the combining of the Journal 
and Day-book in one book. (For form of Journal-Day- 
book, see form below.) 

107. The Books: The Day-book and Journal are com¬ 
bined in this and the following sets. Write Day-book 
entry under Journal entry. The Ledger, Bill-book and 
Check-book are used as in the preceding sets. 

108. Brief Rule : Interest or Discount is Debited 
when it costs us value; and Credited when it produces 
us value. Memorize paragraphs 29 and 30. 

109. Partnership. A partnership is a voluntary 
association of two or more persons for che purpose of 
conducting a business under a common name, whereby 
the partners invest and share the losses and gains accord¬ 
ing to agreement. Articles stating the exact terms upon 
which the partnership is formed should be written, each 
partner signing and keeping a copy of same. 

Note.—For articles of Copartnership, see form of Models on 
teacher’s desk. 

FORM OF JOURNAL-DAY-BOOK. 

1 March 1, 1896. 


Interest , 

20 



To Cash , 

Paid interest to date on note, favor 
Clark & Sons, dated Mch. 1st, 1895, 
amt. $565.00. 



20 

2 




Cash, 

To Interest, 

j Interest to date on Lacy's note , my 

1 favor, amt. $1,000.00. 

7 

25 

7 












64 


massey’s modern book-keeping. 


SET THREE. PRACTICE WORK. 

Note.—The following entries are intended as a supplementary 
drill in journalizing Interest and Discount. Carefully journalize 
and submit to your teacher. See form of Journal-Day-Book, 
page 63. 

(1) Paid cash $20.00 for interest on my note of $565.00, 
favor Clark & Sons. 

(2) Received cash $7.25 for interest on Lacy’s note, 
my favor, for $1000.00. 

(3) Received cash from Howard Bros., for their note 
of $2000.00; interest, $27.50. 

(6) Paid cash $10.75 for interest on my note at 15 
days, favor Turner Berry, amount $1272.00. 

(7) Paid Arren Beesmer cash for my note of $300.00; 
interest on same, $10.00. 

(8) My note given Jan. 6, favor Moore H. Green & Co., 
is now due. Face of note, $800.00; interest, $7.00. I have 
paid the same with a new note for the full amount- 

(9) W. G. Massey’s note of the 3d ultimo is now due. 
Face of note, $500.00. Interest on same to date, $3.25. 
Received cash for same. 

(10) Paid cash for my note with interest. Face of 
note, $500.00; interest, $22 00. 

(11) Sold Donalson Lumber Co., 10 bbls. white sugar 
@ $12.50. Received in payment 15,000 yellow pine shingles 
at $2 00 per thousand and their note for balance. The 
shingles were for my private use. 

(12) Exchanged notes with W. O. Brown for our mutual 
accommodation, each drawn at 30days, for $500.00. Dis¬ 
counted his note at Third National Bank. Discount off, 
$5.15; net proceeds received in cash. 

(13) I have this day taken up my note, favor of John 
Donk, Jr., dated 1st inst., at six days. Face of note, 
$1500.00. Discount off, $15.00. 

(14.) Received from Howard Payne, for balance due on 
account, his note at 90 days, dated July 12, which I have 
this day discounted at the German National Bank at 1%. 
Face of note $1800.00. 


massey’s modern book-keeping. 

SET THREE. 


65 


MEMORANDA FOR ACTUAL TRANSACTIONS. 

(51) You are now to form a co-partnership with some 
student under the firm name of (your own name) & Co., 
for the purpose of continuing the business. Your part¬ 
ner will invest an amount of money to equal your Present 
Worth, as shown by your Balance-sheet at the close of Set 
Two, and losses or gains are to be shared equally. 

Note. You may select any one of your fellow-students as a 
partner, and your teacher will provide him with the necessary 
amount of cash. 

(52) Give checks to all persons, if any, whom you owe 
on account, as shown by your Ledger. 

(58) Draw check for $50.00 in favor of your teacher 
(or real estate office, if one is running) and hand to him 
in payment of one month’s rent. 

(54) Present to the proper firms for payment all notes 
that are due, if any. Collect for the interest of the notes 
as well as the principal, if interest-bearing notes. 

Note.— Debit Cash; credit Bills Receivable and Interest. 

(55) Give check in payment of demand note given in 
transaction 25. 

(56) Sell to wholesale house on account. 

(57) Discount at Bank note received in transaction 86, 
and have proceeds placed to your credit. 

Note. —Debit Bank and Discount; credit Bills Receivable. 

(58) Wishing to borrow some money, you will write a 
note for $500.00 favor of the Cashier of the Bank and 
have it discounted, placing proceeds to your credit. 

Note. —It is customary with banks to require at least one 
indorser on all papers which they discount. Request some student 
to indorse this note for you. 

(59) Sell Merchandise on account. (60) 

(60) Buy Merchandise on account. (59) 

(61) Buy Merchandise and give check. (62) 

(62) Sell Merchandise for cash. (61) 



66 


massey’s modern book-keeping. 


(63) Sell Merchandise and receive in payment demand 
note. (64) 

(64) Buy Merchandise and give in payment demand 
note. (63) 

(65) Loan your teacher $500.00 on his note indorsed 
by the wholesale firm, payable in 30 days with 8% 
interest. 

Note.—Present note, omitting signature, and check to your 
teacher. 

(66) Draw $50.00 from business for private use. 

Note.—Write check in your favor, indorse and hand to your 
teacher. The object in giving the check to your teacher is to 
enable you to keep your Cash account correct. Debit yourself 
and credit Bank. 

(67) Sell Merchandise on account. (69) 

(68) Sell Merchandise £ on account, \ cash. (70) 

(69) Buy Merchandise on account. (67) 

(70) Buy Merchandise on account, cash. (68) 

(71) Sell Merchandise on 60 day note. 

(72) Discount at Bank, note received in transaction 71, 
and have proceeds placed to your credit. 

(73) Give your partner check for $50.00 to apply on 
account. 

Note.—Write check favor of your partner. Have him indorse 
same and hand to your teacher. Debit your partner. 

(74) Present all notes due, if any, for payment. Col¬ 
lect cash for face of note and interest. 

Note.—When cash is received for a note turn immediately to 
your Bill-book and mark “Paid,” together with date. 

(75) Give check in payment of your demand note given 
in transaction 64. 

Note.—Have note marked across its face “Paid” in red ink. 
Place the note in envelope used for this purpose, 

(76) Carefully examine your Merchandise box to see 
that it is properly assorted. 

(78) Prepay all your Bills Payable not due, and have 
the holders allow you the discount. 

Note.—Use special care to see that the above direction is com¬ 
plied with before leaving the transaction. 


massey’s modern book-keeping. 


67 


(79) Discount at Bank all Bills Rcceivablo you havo 
on hand, and which are not due. Have proceeds placed 
to your credit. 

Note.—Transactions 78 and 79 will dispose of all notes. Your 
Bill-book and Bills Receivable and Bills Payable accounts should 
show this fact and balance. If there should be any mistake in 
these accounts, it should be corrected before proceeding further, 
This is important. Make an Inventory of goods on hand. Leave 
your Bank Pass-book at the Bank to be balanced. Post the 
actual transactions just performed to your “Practice Ledger.” 
Make Balance-sheet and close your Ledger. Hand your books to 
your teacher to be examined. If approved, copy “Practice 
Ledger” to “Good Ledger.” Render statement to all firms owing 
you. Carefully arrange all papers, books, etc., on your desk. See 
that your Merchandise is properly assorted. Submit all books to 
your teacher for final grade. Recite review questions of this 
set. 

REVIEW QUESTIONS. 

(106) What is the object of Set Three ? How may the Journal 
and Day-book be combined ? 

(107) What books are used in Set Three? What is Interest ? 
What is Discount ? 

(108) When are Interest and Discount debited ? When credited ? 
When the debit side of the account is the larger, is the difference 
a loss or a gain ? 


68 


MASSEY’S MODERN BOOK-KEEPING. 


EXAMINATION RECORD, SET THREE. 

Date. Teacher. 

Questions. Journal-Day-book_ 

Good Journal. Practice Journal. 

Practice Ledger. Good Ledger. 

Balance-sheet. Second Trial-balance 

Re-work. 

Copy. 

Business papers. 

Bill-book. 

Statements rendered. 

( On hand. 

Cash: } 

( In Bank. 

Articles of Co-partnership. 

Date of commencing Set. 

Date finished. 

Bank Pass-book. 

























1 SET FOUR. S 

52 ^ 

V^VJg\^^VigVigVigVjgV/VifVlgVlgV^Vjg^MgV^^Vl^^N/\IU>^lj/vur 

?n^ 7n*5 ^rj tiX /ns tits /n^ /n^ /n^ 7ns yns tin ?n^ /r^ t?K i?ni ^rni innj ^ni 

ORDER OF WORK. 

First.—Thoroughly memorize paragraphs 110 to 124, 
inclusive. 

Second.—Journalize practice work on pages 74 to 76 
and submit work to your teacher. 

Third.—Carry out the actual transactions of Set Four, 
entering all accepted drafts in the Bill-book. 

Fourth.—Journalize the actual transactions. 

Fifth.—Post Journal entries to “Good Ledger.” 

Sixth.—Make Balance-sheet and close the Ledger. 

Seventh.—Recite to your teacher review questions on 
page 79. 

Eighth.—Submit all your books to your teacher for 
final examination. 


70 


massey’s modern book-keeping. 


SET FOUR. EXPLANATIONS AND DEFINITIONS. 

110. The object of this set is to illustrate Drafts. 

111. The books used are the same as those employed 
in the preceding set. 

112. A Draft is a written instrument wherein one 
party, called the drawer, directs a second party, called the 
drawee, to pay a third party, called the payee, a certain 
sum of money at a certain time. 


Form of Sight Draft . 


$ 1000.00 Jacksonville, Fla., Jew. 2, 18 96. 

At sight Pay to the Order of 
Swift, Macy & Sons, . 


One Thousand foo DOLLARS, 

Value received, and charge to the account of 


To Clark & Co ., 

Montgomery , Ala . 


JL. Student. 


113. Employment of Drafts. Drafts are used by 

business men to obviate the risks, inconvenience and ex¬ 
pense of transmitting money from place to place. 

114. Parties to a Draft are: First, the drawer, that 
is, the one who writes the demand; second, the drawee, 
the party upon whom the draft is drawn; third, the payee, 
the party in whose favor the draft is made payable. In 
the form of draft given above the drawer is a student. 
The drawee is Clark & Co., and the payee is Swift, 
Macy & Sons. 

115. Time of Drafts. Drafts are drawn payable at 
sight; a specified number of days after sight (that is, after 
acceptance); or a specified number of days after date. 

116. Sigdit Drafts are payable when presented, except 
in those States which allow three days of grace. Time 
Drafts are payable at a future time after acceptance, or a 
certain number of days after date. 





massey’s modern book-keeping. 


71 


117. Acceptance 'is agreeing to the terms of a draft, 
and is made by the Drawee’s writing his name across the 
face of the draft, and usually the word “ accepted” and 
date in red ink. 


Form of Sight Draft with Acceptance. 


$ 100.00 Columbus, Ga.,/an. 6 , 189#- 

Sijcty days after sight Pay to the order ot 

A. Sttident, . 

One Hundred .^DOLLARS, 

Value received, and charge to the account of 


To J. A. Kirven & Co ., 
Columbus, Ga. 


Clark Sc Thomas. 


118. Brief Rules for Journalizing Drafts: 

1. Whenever you draw a draft or order on a person 
credit that person ; debit what you receive, as in other 


cases. 

2. Whenever you receive a sight draft drawn on another 
person, debit cash; credit what you dispose of, as in 
other cases. 

3. Whenever you receive a time draft which has been 
accepted, debit Bills Receivable; credit what you dispose 
of, as in other cases. 

4. Whenever a person draws a draft or order on you 
which you honor, debit that person: credit Bills Payable. 
Accepting a draft is the same in effect as giving your 
note. 

5. Whenever a person draws a draft or order on you 
which you pay in cash, debit that person; credit Cash. 

119. Dating Acceptance. When drafts are drawn at 
a specified number of days after sight, it is necessary to 
date the acceptance; when drawn at a given number of 
days after date, the date of acceptance is unnecessary. 

120. Place Of Payment. Drafts are payable usually 
at the drawee’s place of business. They may, however, be 
made payable at any bank. 






72 


massey’s modern book-keeping. 


121. Drafts for Collection and Discount. Business 
firms frequently find it necessary to draw drafts upon 
customers before the accounts become due and discount 
at bank in order to raise cash. When this is done the 
drafts are drawn at such a number of days as will extend 
the payments on them until the time they become due. 

122. Bank Drafts are drafts payable at sight, drawn by 
a cashier of a bank upon another bank in which the former 
bank has funds to its credit. A draft drawn upon a bank 
located in New York, is called New York Exchange. Sight 
drafts in our favor and bank drafts are always con¬ 
sidered cash. 


FIRST NATIONAL COLLEGE BANK, M 

No .6841. 

Of Atlanta, Ga. ^ 

Atlanta, Ga „Jan. 5, 189 6. 

Pay to the order of Miles Sr Lott, .. 

One Hundred . Dollars, $100.00 

To CHEMICAL NATIONAL BANK, I R. S. IV lilt 8. 

_ NEW YORK . I Cashier. 

123. Indorsements: When commercial papers are 
made payable to Bearer, no indorsement is required to 
make them transferable, but papers made payable to 
order must be indorsed. 











MASSEY’S MODERN BOOK-KEEPING. 


73 


124. Certified Check. A certified check is a check that 
has been certified by the bank upon which it is drawn. 

The cashier or teller writes or stamps across the 
face of the check “ Certified,” or “ Grood when properly 
indorsed,” together with the date and his signature. 

Note.—When a bank certifies a check, it becomes responsible 
for its payment, whether the drawer has funds to his credit or 
not. However, the cashier of a National Bank is not allowed 
to certify a check unless the depositor actually has the amount 
to his credit to pay it. 


Form of Check Certified. 


No. 67 

Montgomery, Ala., May 5/, 18 96. 

FIRST NATIONAL COLLEGE BANK. 

Pay to C. F. 

Beutel. . .or order, 

Five Hundred 

..-^Dollars- 

$500.00 

Perry Spencer Massey . 


125. Filing* Papers. In the following sets carefully 
file all drafts, notes, checks, receipts and other papers 
received. 

A very convenient method of filing is to use large en¬ 
velopes that have been sealed and the ends cut off. Use 
one envelope for each kind of paper and slip the notes, 
drafts, etc., into the proper envelope as soon as received. 





74 


massey’s modern book-keeping. 


SET FOUR. PRACTICE WORK. 

Note.—Journalize the following entries on foolscap paper 
and submit to your teacher for examination. All drafts called 
for must be written on foolscap paper. In making important 
entries use precedent given to you by your teacher. 

(1) Deposited in College Bank, cash $1500.00. 

(2) Gave L. H. Chappell a check for $75.00 in payment 
of one month’s rent. 

(8) Bought of Williams & Co., 360 Broad street, Colum¬ 
bus, Ga., on account, 60 days : 

12 Sacks, 1500 lbs., Choice Coffee, 

2 Buckets, 100 lbs., Fancy Candy, 

25 Boxes, 625 lbs., XXX Crackers, 

20 Bbls. Fancy Flour. 

Note.—Enter in Journal-Day-book. 

(4) Sold Hamberger, Scott & Co., on account, 60 days: 

10 Bbls. Fancj 7 Flour. 

(5) Drewasight draft on Clark & Co., Montgomery, 
Ala., in favor of Swift, Macy & Sons, for $1000.00, and 
remitted the same to them (Swift, Macy & Sons) to apply 
on account. 

Note.—Write in proper form, the draft called for above. See 
form, page 70. Debit Swift, Macy & Sons, credit Clark & Co. 
See Rule No. 1, page 71. 

(6) Gave Swift, Macy & Sons a check for $1000.00 to 
apply on account. 

(7) Received of Perkins, Davis & Co., to apply on 
account, $500.00. 

(8) Gave Lee Bros, my 60 day note, dated Jan. 5th, for 
$250.00, to apply on account. 

(9) Sold to Clark & Thomas on account, 60 days : 

50 Bbls. Fancy Flour, 

5 Boxes, 125 lbs., XXX Crackers. 

(10) Received from Clark & Thomas, to apply on ac¬ 
count, their draft for $100.00, dated Jan. 6th, at 60 days 
after sight, on J. A. Kirven & Co., this city, in my favor, 
which the drawees have this day accepted, payable at the 
Merchants and Mechanics Bank. 


massey’s modern book-keeping. 


75 


Note.—Write draft, including acceptance, see Par. 117; debit 
Bills Receivable; credit Clark & Thomas. See Rule No. 3, page 71* 

(11) Sold Lewis & Gregory on their note, 60 days: 

20 Bbls. Fancy Flour. 

(12) Discounted note received in transaction 11, at 
Bank. Amount, less 62 days discount, placed to my credit. 

Note.—Make proper indorsement on note, see Par. 123. 

(13) Sold Edge, Worthingham & Co., on account, 30 
days: 

10 Bbls. Fancy Flour, 

5 Boxes, 125 lbs., XXX Crackers, 

1 Sack, 15 lbs., Choice Coffee. 

(14) Drew a draft, at 30 days from date, on Edge, 
Worthingham & Co., Atlanta, Ga., favor myself, for the 
amount of their account, and remitted to Swift, Macy & 
Sons to apply on account, less 33 days discount. 

Note.—Write draft, favor yourself, with proper indorsement* 
Debit Swift, Macy & Sons, and Discount; credit Edge, Worthing¬ 
ham & Co. See Rule 1, page 71. 

(15) Wishing to borrow some money, I discounted my 
60 day note, $500.00, favor of Students’Commercial Bank, 
at Bank, and had proceeds placed to my credit. 

(16) Paid Harris Bros.’sight draft on me for $100.00, 
dated Jan. 9, in favor of Lee Bros., by check. 

Note.—Write draft. Debit Harris Bros.; credit Bank. 

(17) Sold Miles & Lott, on account, 60 days: 

2 Buckets, 100 lbs. Fancy Candy, 

Note.—Enter in Journal-Day-book. 

(18) Drew a draft, 30 days from date, on Miles & Lott, 
Columbus, Ga., in favor of myself, for one-half the amount 
of invoice sold in transaction 17, and discounted draft at 

Bank, proceeds placed to my credit. 

Note—Write draft with proper indorsement. Debit Bank and 
Discount; creditMiles& Lott. See Rule No. 1, page 71. 

(19) Received from Miles & Lott, a draft for $100.00 
drawn by the First National College Bank, of Atlanta, R. 
S. White, Cashier, on the Chemical National Bank, of 
New York, in their favor, and transferred by them to me 
by full indorsement. 


76 


massey’s modern book-keeping. 


Note.—Write draft with proper indorsement. See form of Bank 
draft, page 72. Debit Cash; credit Miles & Lott. 

(20) Deposited for credit in Students’Commercial Bank, 
draft received in transaction 19. 

Note.—Debit Bank; credit Cash. 

(21) Sold Taylor & White on account, 90 days: 

10 Bbls. Fancy Flour. 

(22) Drew a 90 day draft, dated Jan. 16, on Taylor & 
White, Mobile, Ala., for one-half amount of invoice sold 
in transaction 21, and deposited with bank for acceptance. 

Note.—Write draft, no Journal entry required until the draft 
has been accepted. 

(23) Students’ Commercial Bank notifies me that 
my draft drawn on Taylor & White has been accepted, 
payable at the Mobile National Bank. 

Note.—Write acceptance. Debit Bills Receivable; credit Tay¬ 
lor & White. See Rule No. 3, page 71. 

(24) Discounted Taylor & White’s acceptance and had 
amount, less 93 days discount and 25 cents collection 
charges, placed to my credit. 

Note.—Debit Collection, and Bank; credit Bills Receivable. 

Note.—Submit your Practice exercise and all drafts called 
for in the practice work to your teacher for examination. 


massey’s modern book-keeping. 


77 


SET FOUR. 


MEMORANDA FOR ACTUAL TRANSACTIONS. 

(80) Test your cash to ascertain if correct before 
beginning this Set. 

(81) Give check, $50.00, for one month’s rent. 

Note.—Hand to your teacher or Real Estate Agent, and enter 
on stub of Check-book. 

(82) Sell Merchandise on account. 

(83) Buy Merchandise on account. 

(84) Buy Merchandise on account, 15 days. 

(85) Sell Merchandise on account, 15 days. 

(86) Draw draft 15 days from date on account of tran¬ 
saction 85, and have the same accepted. 

Note.—It is unnecessary to enter this acceptance in the Bill- 
book, as it is discounted in the following transaction. 

(87) Discount at Bank draft received in transaction 86, 
and have proceeds placed to your credit. 

Note.—Debit Bank and Discount; Credit Bills Receivable. 

(88) Sell Merchandise and receive in payment sight 
draft. 

Note.—Sight drafts, your favor, are treated as cash. 

(89) Buy Merchandise and give in part payment the 
sight draft received in transaction 88, and give check for 
balance. 

Note.—The purchase should, of course, exceed the amount of 
the sight draft. 

(90) Buy Merchandise and give in payment your 60 
day note, no interest, indorsed by some student. 

(91) Buy Merchandise on account. 

(92) Buy at Bank with check, a bank draft favor of 
yourself for amount to equal the value of Merchandise 
bought in transaction 91. Indorse the draft and deliver 
in payment of goods purchased. 

(93) Buy from Wholesale House, Merchandise, and give 
in part or whole payment a sight draft on some student 



78 


massey’s modern book-keeping. 


who owes you an account. If no one owes you on 
account, draw draft on your teacher. 

(94) Buy Merchandise and give in payment a 10 days 
sight draft on yourself. Accept the draft and deliver it 
in payment for the amount of the invoice. 

Note.—This draft when accepted by you becomes in effect 
Bills Payable to you. Enter in Bill-book. 

(95) Sell Merchandise and receive in payment a 
sight draft. 

(96) Sell Merchandise and receive in payment a draft 
drawn 80 days from date. 

(97) Sell to your teacher Merchandise, and receive in 
payment his demand draft drawn on R. W. Massey & Co. 

Note.—Write draft, present it to your teacher for signature, 
and then have R. W. Massey & Co. accept the same. 

(98) Sell Merchandise to wholesale firm, and receive in 
payment their 15 days sight draft on your teacher. 

Note.—Present draft for acceptance and record in Bill-book. 

(99) Buy Merchandise and give in payment a sight draft 
drawn on some one who owes you on account. If no one 
owes you on account, give check for the amount of the 
invoice. 

(100) Give check for Bills Payable due, if any. Collect 
for all Bills Receivable due, if any. 

Take inventory, valuing Merchandise at market quota¬ 
tions. Make deposit and have Bank Pass-book balanced. 
Post to “Practice Ledger,” make Balance-sheet and close 
Ledger. Submit work to your teacher. If correct, copy 
in “Good Ledger.” Submit all papers in your possession 
to your teacher for examination. 


massey’s modern book-keeping. 


79 


REVIEW QUESTIONS. 

110. What is the object of Set Four? 111. What books are used? 
112. What is a Draft? 113. The object of a Draft ? 114. What 
are the parties to a Draft called ? Which is the Drawer ? Which 
is the Drawee? Which is the Payee? 115. In how many ways 
are Drafts drawn with reference to time ? What are they ? 
What are they called ? 116. When are Sight drafts payable ? 
When are Time drafts payable ? 117. What is meant by “Accept¬ 
ance” ? How is it done? 118. Give the five brief rules for 
journalizing drafts. 119. When is it necessary to date an ac¬ 
ceptance ? When not necessary ? 120. Where are drafts usually 

made payable? 121. How are drafts drawn for discount? 122. 
Define Bank draft, and state how it is used. 123. What is a 
Blank Indorsement? A Full Indorsement? An Indorsement 
without recourse ? An Indorsement for collection ? 124. Define 
Certified Check and state how it is used. What effect does a cer¬ 
tified check have upon a bank ? 125. How should business papers 
be filed ? Is this important ? 


EXAMINATION RECORD, SET FOUR. 


Date.Teacher. 

Questions.Journalizing Practice. 

Good Journal.Good Ledger. 

Balance-sheet.Second Trial-balance 

Re-Work. 

Copy. 

Business Papers.Bill-book. 


Bills Receivable. 

Dr. side, $.. 

Cr. side, $. 

Notes on hand, $. 


Bills Payable. 

Cr. side, $. 

Dr. side, $. 

Notes outstanding, $ 


Cash on hand, $ 
Cash in bank, $ 























augiUg iU g iU f jUg iUftUg \f\y\)£\¥: 

^ri 

| SET FIVE. § 

y ^VJ£y£a^v/v^v^v/?^v^vi^v/?Ayv^^v/win^in^v^w 
A^AAAAAAA7I^AA^^A7N7NjmA7K 

ORDER OF WORK. 

First.—Memorize paragraphs 126 to 130, inclusive. 

Second.—Enter all the practice work of Set Five in your 
Cash-book and Practice Journal-Day-book and submit to 
your teacher for examination. Student should use the 
last part of the Cash-book for Practice Work, or use 
foolscap paper properly ruled. 

Third.—Carry out the transactions of Set Five, enter¬ 
ing all the cash items in Cash-book and other items in 
Journal and notes in the Bill-book. 

Fourth.—Post Cash-book and Journal entries to “Good 
Ledger.” 

Fifth.—Make Balance-sheet and close Ledger. 

Sixth.—Recite to your teacher review questions. 

Seventh.—Submit all books to your teacher for exami¬ 
nation and final grade. 

Special Notice :—If students prefer they can use foolscap 
paper in journalizing all “Examples for Practice” instead of 
using “Practice Journal.” 


massey’s modern book-keeping. 81 

SET FIVE. EXPLANATIONS AND DEFINITIONS. 

126. The Special object of Set Five is to illustrate 
the use of the Cash-book as a principal book of entry, to¬ 
gether with the Bank Account as an auxiliary account. 

127. The Books used are the Journal-Day-book, Cash¬ 
book and Ledger as principal books, and the Bill-book, 
Check-book and Pass-book as auxiliaries. 

128. The Cash-book is a book in which is recorded all 
cash received and expended. Cash received is entered on 
the left-hand page, and Cash paid out on the right-hand 
page. The amounts on either side are placed in the first 
money column. The second money column is used for to¬ 
tals and balance carried forward. If the total of the credit 
column be subtracted from the total of the debit column, # 
the difference will represent the amount of Cash on hand. 

Note. —In business the Cash-book should be closed and the 
Cash balance proved at the end of each day’s business. All cash 
items are placed in the Cash-book, and not in the Journal. 

129. Posting’ from Cash-book. All items from the 
Cash-book are posted direct to the Ledger. The explana¬ 
tion of “C. B.” is written in the explanation column of 
the Ledger to show from what book the item was posted, 
also the page of the Cash-book is entered in the page- 
column. All items on the left-hand page of the Cash¬ 
book are credited in the Ledger with the amounts oppo¬ 
site their names, and the items on the right-hand page 
are debited in the Ledger in a similar manner. It is 
unnecessary to open an account with Cash in the Ledger, 
although it is frequently done by accountants; the bal¬ 
ance, however, must be placed on the debit side of the 
Trial-balance. (For form of Cash-book see pages 88 and 89.) 

130. Bank Account. It is a custom with some book¬ 
keepers to do as the student has been doing, to keep 
Ledger accounts with the bank the same as other personal 
accounts, while others have an extra column in the Cash¬ 
book for deposits and checks. Either of those methods 
require considerable extra work without any correspond- 

6 


82 


massey’s modern book-keeping. 


mg gain. Should the bank account for any reason be 
overdrawn, the amount of overdraft should be written in 
red ink on the stub of the Check-book until such a time 
as a deposit will offset the difference. Under no cir¬ 
cumstances should the Cash-book be closed while the 
bank account is overdrawn. 

The stub of the Check-book affords a very convenient 
and appropriate place for the bank record, and this 
method is employed by the most modern accountants. 

The left-hand page or back of the stub, may be ruled 
to record deposits and the balance in bank, or the face 
of the stub could contain the record of deposits made. 
When a deposit is made the amount should be added to 
the balance already in bank. When a check is drawn the 
amount should be brought directly opposite and deducted 
from the previous balance. See form on page 90. 

Example: On January 1, we have a balance in Bank 
of $5,400.00. On the 2nd of the month we issue a check 
favor Alex. Rice for $2,500.00, which being deducted from 
the balance leaves still in Bank, $2,900.00. We deposit 
$315.00, which, added to the amount before in Bank, makes 
a total to our order of $3,215.00. On January 4, we gave 
a check favor of Samuel Alexander for $200.00, which 
deducted leaves a balance of $3,015.00. The Bank noti¬ 
fies us that they have collected J. L. McIntosh’s note, our 
favor, for $225.00, and placed the amount, less 50 cents col¬ 
lection charges, to our credit. We enter this as “ Col. 
$224.50” and add to the previous balance, and so on, add¬ 
ing when deposits are made and subtracting when checks 
are given. 

Note.—The student will rule a sheet of paper to represent the 
stub of the Check-book and work out the above example and sub¬ 
mit to the teacher. 


83 


massey’s modern book-keeping. 


SET FIVE. EXAMPLES FOR PRACTICE. 


Note.—A sheet of foolscap paper may be used to represent the 
stub of the Check-book. Two or more pages of the “Practice 
Journal” may be used to represent a “Practice Cash-book.” 


Student commenced business this day, May 1 1896 by 
investing cash, $5000.00. J. M. Latham, your part- 
ner, invests cash, $8500.00. (Enter both amounts on the 
left-hand side of the Cash-book, which debits Cash, credits 
Student and J. M. Latham. See Cash-book, page 88 ) 
Paid rent of store in cash, $100.00. (Enter on the 
right-hand side of Cash-book, which debits Expense and 
credits Cash. See page 89.) 


Deposited $2000.00 in First National College Bank. (As 
cash in bank is usually considered cash on hand, no Cash¬ 
book entry is required. Enter on stub of Check-book.) 

Bought of Jones Bros, by check, Merchandise, $600.00. 
(Enter on right-hand side of Cash-book, Merchandise, 
and in the explanation column the name of seller, and 
subtract from balance in Bank as shown on the stub of 
Check-book.) 

Petty cash sales for the day amounted to $465.00. 
(Small sundry sales are carried to the left-hand side of 
the Cash-book and entered as Merchandise.) 

R. L. Lee pays his note of Jan. 5th, our favor, in cash. 
Face of note $565.00; interest to date $8.75. (Enter on 
left-hand side of Cash-book, Bills Receivable, $565 00 • 
interest $8.75. See Cash-book, page 88.) 

Sold W. S. Crane,City, for cash: 

5 Boxes, 1250 Lbs., XXX Crackers, 

10 Bbls. Family Flour.. 

(Enter in Cash-book, Merchandise. See page 88.) 

Sold W. S. Crane, Eutaw, one-half cash, and his note 
payable in 30 days from date for balance: 

25 Lbs. Cheese, 

50 Bbls. Irish Potatoes. 

(Enter in Cash-book on left-hand side, Merchandise 
for one-half the amount of the invoice. Make Journal 
entry, Bills Receivable to Merchandise for one-half the 


84 


massey’s modern book-keeping. 


value of the invoice. See Cash-book, page 88.) 

Bought Merchandise of Goetter, Weil & Co., by check, 
$650. (Enter on right-hand side of Cash-book, and 
subtract from balance in Bank as shown by the stub of 
Check-book.) 

Received cash from Black Bros., $100.00, to apply on 
account. (Enter on left-hand side of Cash-book,—Black 
Bros., $100.00.) 

Deposited in Bank $450.00. (No Cash-book entry 
required. Add to balance in Bank as shown on the stub 
of Check-book.) 

Gave H. W. & L. F. Smith a check for $75.00 to apply 
on account. (Enter on right-hand side of Cash-book,— 
H. W. & L. F. Smith $75.00, and subtract check from 
balance in Bank.) 

Cash Merchandise sales, $685.00. (Enter on left-hand 
side of Cash-book.) 

Bought for use in business, horse and wagon, and gave 
check, $250.00. (Enter on right-hand side, Expense, 
$250.00. This debits Expense and credits Cash. (Sub¬ 
tract the check from the balance in Bank as shown by 
the stub of Check-book.) 

Had Cook & Co.’s note, our favor, $480.00, discounted 
at Bank, and had the amount, less $5.60 discount, placed 
to our credit. (Enter on left-hand side of Cash-book,— 
Bills Receivable, Cook& Co.’s note, $480.00. This debits 
Cash and credits Bills Receivable. On the right-hand 
side of Cash-book enter,—Discount, Cook & Co.’s note 
$5.60. This credits Cash for the amount paid for dis¬ 
count, and debits Discount for the amount it cost you. 
The difference between the amounts of these two entries 
will represent the amount of cash you received. On stub 
of Check-book enter,—Discounted note, $474.40—the net- 
amount in bank to your credit. GET THE DIFFERENCE 
BETWEEN THE debit and credit columns of the Cash¬ 
book and submit it to your teacher. If the amounts are 
correct, balance and rule up Cash-book. See page 89.) 


massey’s modern book-keeping. 


85 


MAY 2. 

Paid Blacksmith bill by check, $6.00. Cash, Merchan- 
dise sales, $600.00. Bought of Clay & Stephens, for cash, 
Merchandise, $60.00. Bought of West & Son, by check, 
Merchandise,$125.00. Bought of Cary & Co., by note one- 
half, cash one-half, Merchandise, $450.00. Cash Mer¬ 
chandise sales, $41.70. Keceived ,of John Percy, on 
account, his check for $185.00. Paid interest on my note 
favor Huff & Bro., $6.75. Bought a warehouse for our 
use and paid cash, $1,500.00; (debitReal Estate.) Had it 
insured for $1,000.00 and gave check $20.00 for premium 
on policy. Bought 10 shares Georgia Home Insurance 
stock at $85.00, par value $100.00. Gave check in pay¬ 
ment. (Debit Georgia Home stock for $850.00.) 

Cash Merchandise sales, $500.00. Sold Williams & Co., 
for cash: 

60 Bu. Irish Potatoes, 

60 Bbls. Fancy Flour, 

600 Lbs. Fancy Coffee. 

Paid taxes by check, $6.50. Deposited in Bank, cash, 
$500.00. 

Cash Merchandise sales, $1,500.00. 

J. M. Latham withdrew from business, cash $50.00. You 
make an additional investment of $1,000.00. Deposited 
in Bank, cash, $1,000.00. Ryder & Ryder owe us $500.00, 
which is considered doubtful. We effect a settlement by 
receiving $400.00 cash, and giving them a receipt in full. 
(Enter on left-hand side of Cash-book, “Ryder & Ryder, 
$400.00.” Make a Journal entry debiting Loss and Gain, 
and crediting Ryder & Ryder $100.00.) Bought additional 
office fixtures, $65.00, and gave check for same. Get the 
total of your debit and credit footings and submit to 
your teacher. If correct, balance your Cash-book and 
carry the balance forward. 

MAY 3. 

Bought New York Exchange and remitted to Poole 
Bros., Chicago, to be placed to cur credit. Gave check 
for face of draft, $565.00, and paid $7.50 cash for premium 


86 


massey’s modern book-keeping. 


on draft. J. M. Latham makes an additional investment 
of $2,000.00. Deposited this amount in Bank. 

Drew a 60 day draft on Freeman Grocery Co., for 
$500.00, the amount of their account, and discounted at 
Bank at 6 per cent, per annum, and had proceeds placed to 
our credit. The Bank charged us 25 cents in addition to 
the discount for collecting the draft. (Debit Collection 
and Exchange for 25 cents.) 

Bought safe for office use, $125.00, and gave check for 
same. Deposited $1,500.00 in the Bank. Paid B. Dick¬ 
erson $150.00 by check in full of account of salary to date. 
Wishing to borrow some money, we discounted our 60 day 
note in favor of Bank for $500.00 and had proceeds placed 
to our credit. 

Paid $10.00 for advertising in the Enquirer-Sun. Cash 
Merchandise sales, $600.00. Bought Merchandise by check, 
$600.00. Drew a 60 day draft on Dryer King for $250.00, 
the amount of his account, and left it at Bank for accept¬ 
ance. (No Journal entry required until the draft has 
been accepted.) Bought New York Exchange, $600.00and 
remitted to Graham & Scott to be placed to our credit. 
Gave check for face of draft and paid in cash, $1.25, the 
amount of the exchange. 

The Bank informs us that our draft on Dryer King, 
drawn in above transaction, has been accepted. Received 
cash $16.75 of Drew &Lacy, in full for interest on their ac¬ 
count to date. C. A. Winshop prepays his acceptance, 
$465.00, less $8.00, amount of discount. Borrowed $500.00 
from W. P. Lassenger on our note at 80 days. Received of 
A. Z. Smith, to apply on account, his check on the Fourth 
National Bank for $25.00. 

Discounted Dryer King’s acceptance.of 24th, and had 
amount, less 61 Hays discount, placed to our credit. 

Submit the total debits and credits of your Cash¬ 
book to your teacher. Rule and carry the balance 
forward. 

Bought Merchandise, $500 00 and gave check for same. 
Paid water tax, $4.00 in cash. Deposited $5.00 cash with the 


massey’s modern book-keeping. 


87 


Gas Company for a g$s meter. (Debit Gas Company.) Cash 
Merchandise sales, $250.00. Deposited in Bank, cash $250. 
Paid our acceptance in favor of Berney & Co., $75.00 in 
cash. Received cash, $50.00, from T. T. Hall, in full of 
account. 

Gave check of $600.00 for Merchandise, and $16.75 for 
freight on same. Paid by check our note, favor R. L. Hill; 
face, $125.00, interest $15.00. Loaned $500.00 to C. M. 
West for a few days, without security; gave check for 
amount. Gave check of $4.70 for printing bill-heads. 
Drew a 90 day draft for $125.00 on M. Buhler, the 
amount of his account, and discounted at Bank, proceeds- 
received in cash. Cash sales, $64.75. Received cash, 
$95.00, for Merchandise that we returned to Young <fc 
Gauge on account of inferior quality. (Credit Merchan¬ 
dise.) Received from Harry Champagne a New York 
draft, $200.00, in full of account, which cost us $1.25 to 
collect. 

Received from Sam Simons, to apply on account, $15.00- 
Received cash, $14.25, for Clark Howard’s order on F. S. 
Crosby. Exchanged our safe for one a size larger, and 
paid a difference of $10.00 by check. John Smith 
prepays his note, our favor, of $65.00, less discount for 
45 days. 

Cash Merchandise sales, $65.00. 

Rule up your Cash-book and present it for exami¬ 
nation and if work be approved, you may commence 
on the transactions for Set Five. 


88 


massey’s modern book-keeping. 


FORM OF CASH-BOOK. 

1896. May 1, 1896. 



L.F. 

A Student 

For Investment 

5000 






J. M. Latham 

ti <( 

8500 






Mdse. 

Petty sales 

465 






Bills Beceivable 

B.L.Lee , note of i- 

565 






Interest 

On above note 

8 

75 





Mdse. 

Cash sale 

167 

50 





Mdse. 

Sold Crane , £ cash 

70 

38 





Black Bros. 

On acc’t 

100 






Mdse. 

Cash sale 

685 






Bills Bee. 

Cook Co.’s note 

480 










16041 

63 



May 

2,1896. 



16041 

63 






t= 



Balance. 

Cash on hand. 



14361 

03 



Mdse. 

Cash sales. 

600 






Mdse. 

Cash sales. 

41 

70 





John Percy. 

On acc't. 

185 






Mdse. 

Cash sales. 

500 






Mdse. 

Cash sales. 

445 






Mdse. 

Cash sales. 

1500 






A. Student. 

Investment. 

1000 






Byder & Byder. 

On acc’t. 

400 










4671 

70 







19032 

73 
















































MASSEY S MODERN BOOK-KEEPING. 


89 


FORM OF CASH-BOOK. 

May i, 1896. 


L.F. 

Expense 

Paid rent for May 

100 





Mdse. 

Jones Bros. Inv. 1 

600 





Mdse. 

Invoice No. 2 

650 





H.W. <£ L.F.Smith 

On acc’t 

75 





Expense 

Horse and Wagon 

250 





Discount 

Cook & Cols Note 

5 

60 






' 


1680 

60 


Balance (Red ink) 

On hand 



14361 

03 






16041 

63 


May 

2, 1896. 






Expense. 

Blacksmith Bill. 

6 





Mdse. 

Invoice No. 5. 

60 





Mdse. 

Invoice No. 6. 

125 





Mdse 

Invoice , % cash. 

225 





Interest. 

Huff’s note. 

6 

75 




Real Estate. 

Warehouse. 

1500 





Expense. 

Insurance. 

20 





Ga. Home Stock. 

Bought @ 85.00. 

850 





Expense. 

Paid taxes. 

6 

50 




J.M. Latham. 

Private use. 

50 





Expense. 

Fixtures. 

65 









2914 

25 


Balance (Red ink) 

Cash on hand 



16118 

48 






19032 

73 






































74 


massey’s modern book-keeping. 





































massey’s modern book-keeping. 


91 


SET FIVE. MEMORANDA FOR ACTUAL TRANSACTIONS. 


(101) Give check, $50.00, to your teacher for one 
month’s rent. 

(102) Write an advertisement and submit to your 
teacher. State in the advertisement what class of goods 
you are handling, together with any other information 
you may choose to give. 

(103) Order a bill of Merchandise from firm No. 1 and 
direct them to charge to your account at 30 days. 

Note.—The student may order such quantities of Merchan¬ 
dise as he may choose, not exceeding $500.00. Write letter giving 
reference as to your financial standing and submit to your 
teacher. If approved, take press copy. See model of letter in 
“ Book of Forms.” 

If the student prefers, he may dictate some of his 
letters to the shorthand students, but of course each 
letter and order should be copied before mailing. Hand 
your letters to your teacher, who will mail them. 

(104) Order a bill of Merchandise on account 15 days, 
from firm No. 2. 

(105) Order a bill of Merchandise (on such terms as 
the student may desire) from firm No. 3. 

(106) Order a bill of Merchandise from firm No. 4. 

(107) Order a bill of Merchandise from firm No. 5. 

(108) Buy Merchandise and give in payment your 30 
day note. 

(109) Sell Merchandise and receive in payment a 15 
day note. 

(110) Discount at Bank draft received in transaction 
96, and have proceeds placed to your credit. 

Note.—On the debit side of the Cash-book, write Bills Receiv¬ 
able and amount; on credit side write Discount, with amount. 
Enter the amount of the net proceeds to your balance as shown 
by the stub of the Check-book. 

(111) Sell Merchandise for cash. (113) 

(112) Buy Merchandise with check. 

(113) Buy Merchandise and give in payment check. 

(Ill) 



92 


massey’s modern book-keeping. 


(114) Sell to Wholesale House Merchandise on account. 

(115) Order a bill of Merchandise from firm No. 6. 

(116) Sell Merchandise and receive in payment,cash for 
one-half the amount of the invoice; balance to remain 
on account. 

(117) Buy Merchandise and give in payment check. 

(118) Draw a 80 day sight draft on wholesale house for 
the amount of Merchandise sold to them in transaction 
114, and discount it at the Bank, having proceeds placed 
to your credit. 

(119) Sell Merchandise for cash. (120) 

(120) Buy Merchandise and give check. (119) 

(121) Sell Merchandise for cash. (122) 

(122) Buy Merchandise and give check. (121) 

(128) Draw 10 day sight drafts on all persons who owe 
you on account, if any, and discount them at Bank, 
having proceeds placed to your credit. 

(154) Pay clerk hire, $10.00. 

Note.—Give check to your teacher. 

(125) Sell Merchandise and receive in payment cash 
for one-half, and a 80 day note, no interest, balance. 

Note.—Balance and rule up Cash-book. Be sure that the 
difference agrees with the amount of cash on hand, plus the 
amount in Bank to your credit. If your cash balance is not cor¬ 
rect report the matter at once to your teacher. Have your 
Bank-book balanced. Post to your “ Good Ledger,” and make 
Balance-sheet. Close all accounts in the Ledger. Render state¬ 
ments to all firms due you. Submit work to your teacher and 
commit to memory the following 


REVIEW QUESTIONS. 

126. What is the object of Set Five ? 127. What books are 
used ? 128. What is the Cash-book ? How is the cash on hand 
ascertained ? How often should the Cash-book be closed ? 129. 
How is the work of posting from the Cash-book performed? 
What explanation should be in the Ledger? Is it necessary to 
open a Ledger account with cash ? 130. How is the Bank 
account kept as an auxiliary account ? 


massey’s modern book-keeping. 


98 


EXAMINATION RECORD, SET FIVE. 


Date.. 

Questions. 

Cash-book. 

Practice Ledger. 

Balance-sheet... 

Re-work. 

Copy. 

Business papers. 

Check-book Stub. 

Note-book Stub. 

Notes on hand. 

( On Hand $ 

Cash: < 

( In Bank $. 

Total $ 

Date of commencing set.. 

Date finished.. 

Total number of days. 


Teacher. 

J ourn al-Day- book. 

Journalizing practice 

Good Ledger. 

Second Trial-balance. 


Bill-book. 

Draft-book Stub. 

Merchandise box.. 

Statements rendered 




























I SET SIX. S 

^ v 

aaaaaaaaaaaaaaaaaaa 

ORDER OF WORK. 

First.—Memorize paragraphs 131 to 132, inclusive. 

Second.—Enter all the Practice Work on pages 95 to 98 
in your “ Practice Cash-book ” and “Practice Sales-book.” 
Rule and foot these books and submit to your teacher. 
The student might use the Day-book for a “ Practice 
Sales-book” and “ Practice Cash-book.” 

Third.—Carry out the actual transactions of Set Six, 
entering all sales in Sales-book, cash in Cash-book, other 
entries in Journal-Day-book, and notes in Bill-book. 

Fourth.—Post your “Good” books to “Good Ledger.” 

Fifth.—Make Balance-sheet and close Ledger. 

Sixth. Recite to your teacher review questions on 
page 101. 

Seventh.—Submit all your books to your teacher for 
examination and final grade. 


MASSEY'S MODERN BOOK-KEEPING. 


95 


SET SIX. EXPLANATIONS AND DEFINITIONS. 

131. The Object of Set Six is to illustrate the use of 
the Sales-book as a principal book of entry. 

132. The books used in this set are the same as those 
employed in Set Five, with the addition of the Sales-book. 

133. The Sales-book is a book in which is recorded all 
sales of the business. The size and ruling of this book is 
similar to the Journal, and where the business is exten¬ 
sive, several sets of Sales-books may be used to an ad¬ 
vantage. While the Entry clerks are filling orders from 
the Sales-book, the Book-keeper can be posting from 
others, thus facilitating matters. The entries in the 
Sales-book are posted to the debit side of the customers’ 
account in the Ledger, or if sold for cash the entry is 
checked and entered upon the Cash-book. At the end of 
the month the total sales is carried to the credit of the 
Merchandise account in the Ledger, thus effecting a great 
saving in posting. 

SET SIX. EXAMPLES FOR PRACTICE. 

Note.—The following is an exercise in the use of the Sales- 
book, and should be carefully entered in that book for your Teach¬ 
er’s inspection. 

After the total sales are added and the Sales-book ruled it need 
not be posted to the Ledger, as this is practice work. 

JUNE 1,1896. 

Sold to Price & Fisher, Montgomery, Ala., terms, on ac¬ 
count, 10 days, less 2% cash in 5 days: 

2 Sacks, 250 Lbs., Fancy Coffee, 

2 Bbls., 500 Lbs., Stick Candy. 

Sold Jolin Davis, Augusta, Ga., terms on account, 5 
days, less 1% cash : 

1500 Lbs. XXX Crackers, 

350 Lbs. Cheese, 

160 Bbls. Fancy Flour. 

Sold J. & O. Collins, City, terms on account, 80 days: 
125 Lbs. Choice Coffee, 

250 ‘ ‘ Fancy Coffee. 


96 


MASSEY’S MODERN BOOK-KEEPING. 


Sold John Purifoy, City, terms, on account, 30 days; 
500 Lbs. Stick Candy. 

250 “ Fancy Candy, 

Ordered by telegraph of Sims & Lewis, Chicago: 

100 Boxes, 250 Lbs., XXX Crackers. 

Paid for telegram in cash, 75 cents. 

JUNE 2. 

Sold Walker, Knabe & Co., City, terms, 20days: 

5 Bbls. Fancy Flour. 

Remitted C. W. Parsons, Mobile, Ala., our check for 
$500.00 in payment* of account, less 2% discount. 

Sold to Geo. Wells, terms, on account, 60 days: 

25 Doz. Eggs. 

Sold J. Collins, City, terms, account 15 days: 

1500 Lbs. Rice, 

10 Bbls. Fancy Flour. 

Sold J. & S. Hickson, City, terms, note, payable 60 days 
with 6 °Jo interest for one-half, balance on open account, 
30 days: 

250 Lbs. Fancy Coffee. 

Sold John Davis & Co., Greensboro, terms, on account 
15 days, less 2 % cash five days: 

10 Bbls. Fancy Flour, 

10 Bbls. Family Flour. 

Cash sales for day per cash drawer, $162.50. 

Sold to S. F. Kimball, terms, on account, 60 days: 

1500 Lbs. Rice. 

Received from John Davis & Co., their check, in pay¬ 
ment of their purchase in above transaction, less 2% 
discount. 

JUXE 3. 

Sold to J. A. Davis & Sons, terms, on account, 30 days • 
150 Lbs. XXX Crackers. 

Sold F. Durrell, terms, on account, 15 days: 

250 Lbs. Fancy Coffee. 

Sold W. J. Little & Co. 

750 Lbs. Fancy Candy. 


massey’s modern book-keeping. 


97 


Received in payment their 30 day draft on Lewis & Co., 
Birmingham, which the drawees have this day accepted, 
payable at First National Bank of Birmingham. 

Sold S. H. Garner, on account, 5 days: 

10 Bbls. Fancy Flour. 

Sold J. O. Lewis, terms, on account, 5 days: 

1500 Lbs. Cheese, 

125 Lbs. Rice, 

250 Lbs. XXX Crackers. 

Sold Henry Miller, terms, on account: 

250 Lbs. Choice Coffee, 

125 Lbs. Fancy Coffee, 

500 Lbs. XXX Crackers, 

125 Lbs. Cheese. 

Discounted Lewis & Co.’s acceptance at Bank, transac¬ 
tion above; and had amount, less 33 days discount, placed 
to our credit. 

Sold G. F. Hart, terms cash: 

10 Bbls. Fancy Flour, 

10 Bbls. Family Flour. 

JUNE 4. 

Sold Edwin Philips, terms, cash: 

250 Lbs. Fancy Candy. 

Received, by College R. R., from Sims & Lewis, 
Chicago, goods ordered by telegraph in transaction 5, and 
per their invoice, terms, 60 days, 2% 80 days, 4% cash 
Remitted them check in full of their account, less cash 
discount. 

Sold W. M. Amos, terms V 2 cash, balance 30 days, less 
5% cash 5 days. 

Sold H. O. Bishop, terms, note payable 30 days for one- 
half; and balance on account: 

250 Lbs. Fancy Coffee. 

Sold K. L. Dowling, terms, note payable 30 days for 
one-quarter, cash one-quarter balance on account 30 days: 
1500 Lbs. Rice. 

Sold J. W. Field & Co., terms, -j- cash, balance sight 
draft on Percy Bros. 

750 Lbs. XXX Crackers. 


98 


massey’s modern book-keeping. 


Sold Godfry Co., terms sight draft on Lee & Lee, Clay¬ 
ton, Ala.: 

500 Lbs. XXX Crackers. 

Sold to the H. & B. Fry Co., terms, cash: 

600 Lbs. XXX Crackers, 

125 “ Fancy Coffee, 

125 “ Choice Coffee, 

125 “ Rice. 

JUNE 5. 

Sold Holmes & Holmes, terms, their note payable at 
60 days, indorsed by J. O. Scott: 

650 Lbs. Fancy Candy. 

Discounted Holmes & Holmes note at Bank and had 
.amount, less 68 days discount, placed to our credit. 

Sold H. S. Cleckly, terms, cash: 

125 Lbs. Fancy Coffee, 

1000 “ Choice Coffee, 

500 “ Fancy Candy, 

500 “ Stick Candy, 

500 “ Rice, 

100 Doz. Eggs. 

Sold John Davis & Co., terms, 10 days, less 5% : 

125 Lbs. Choice Coffee, 

150 Lbs. XXX Crackers. 

Sold Jolin Davis, Augusta, Ga., terms on account, 5 
days, less 1% cash: 

1500 Lbs. XXX Crackers, 

350 Lbs. Cheese, 

150 Bbls. Fancy Flour. 

Bought of C. W. Parsons, Mobile, Ala., 30 days, less 
2% cash 10 days: 

150 Lbs. Rice, 

250 Lbs. Fancy Coffee, 

750 Lbs. Choice Coffee. 

Boxing and Cartage, $2.50. 

Received from Price & Fisher, Montgomery, their check 
on the Planters & Merchants National Bank for invoice 
of first instant, less 2% for cash. 


massey’s modern book-keeping. 99 

FORM OF SALES-BOOK, SET SIX 


L -F. June 1 , 1896. 


3 

Price and Fisher, Montgomery, 






10 days; 2% 5 days {SeeNote 1). 






2 Sacks , 250 lbs., Fancy Coffee, @ 25. 

62 

50 




2 Bbls., 500 lbs., Stick Candy, @ 9£. 

47 

50 

110 

00 

8 

Jolin Davis, Augusta, 

5 days; \% Cash. 

1500 Lbs. XXX Crackers, @ 11. 

165 





350 “ Cheese, @ 13. 

45 

50 




160 Bbls. Fancy Flour, @ 3.75. 

600 


810 

50 

16 

J. & O. Collins, City, 






30 days net. 






125 Lbs. Choice Coffee, @ 22. 

27 

50 




250 “ Fancy “ @25. 

62 

50 

90 

00 

7 

John Purifoy, City, 






30 days net. 






500 Lbs. Stick Candy, @ 9£. 

47 

50 




250 “ Fancy “ @15. 

37 

50 

85 

00 





1095 

50 


Note 1.—The meaning of the above term is that Price & Fisher 
have ten days from date of invoice in which to pay it, and if they 
pay it within five days from that date, they are entitled to a dis¬ 
count of 2 per cent, on the face of the invoice. 

Note 2.—When a cash sale is made to a regular customer hav¬ 
ing a Ledger account, enter the sale on the Sales-book, that a rec¬ 
ord of the transaction can be preserved. All petty cash sales are 
entered, after each day’s business, direct to the left side of the 
Cash-book, with the explanation, “Mdse, sales.” 


























100 


MASSEY’S MODERN BOOK-KEEPING. 


SET SIX. MEMORANDA FOR ACTUAL TRANSACTIONS. 

(126) Your partner wishing to retire from business, you 
will give him a check for the amount of his Present Worth, 
as shown by the Ledger at the close of Set Five. You 
will continue business under the same firm name. Write a 
notice of dissolution (see form in Book of Models, 
teacher’s desk) and post on Bulletin Board. Write a 
letter to each of your foreign correspondents informing 
them of the dissolution. (For form of this letter see 
Book of Models.) 

(127) Order a bill of Merchandise from firm No. 7. 

(128) Order a bill of Merchandise from firm No. 8. 

(129) Order a bill of Merchandise from firm No. 9. 

(130) Order a bill of Merchandise from firm No. 10. 

(131) Order a bill of Merchandise from firm No. 11. 

(132) Buy Merchandise. 

(133) Sell Merchandise on account. 

(134) Sell Merchandise, $ cash, balance on account^ 
10 days. 

(135) Sell Merchandise for 30 day note, no interest. 
Discount note. 

(136) Sell Merchandise, £ cash, balance on account. 

(137) Sell Merchandise, £ cash, £ note, balance on ac¬ 
count, 10 days. 

(138) Sell Merchandise for certified check. 

(139) Sell Merchandise on account. 

(140) Sell Merchandise on account. 

(141) Sell Merchandise and receive in payment sight 
draft. 

(142) Sell Merchandise and receive in payment 60 day 
note. Discount note at Bank. 

(143) Sell Merchandise and receive demand draft. 

(144) Sell Merchandise and receive in payment time 
draft which has been accepted. 

(145) Sell Merchandise on account. 

(146) Sell Merchandise on account. 

(147) Sell Merchandise for cash 


101 


massey’s modern book-keeping. 

(148) Sell Merchandise, \ cash, balance sight draft. 

(149) Sell Merchandise on account. 

(150) Sell Merchandise on account. 

Note.—Balance and rule up Cash-book. Be sure that the dif¬ 
ference agrees with the amount of cash on hand, plus the net 
amount in Bank to your credit. Have your Bank-book balanced. 
Foot up your Sales-book and credit Merchandise in one entry 
for total sales,with explanation in explanation column of Ledger, 
“S. B.” Debit all entries from Sales-book. Post your Good Ledger. 
Make Balance-sheet and close Ledger. Render statements to all 
firms owing you. Submit to your teacher for examination. 

REVIEW QUESTIONS. 

131. What is the object of Set Six ? 132. What books are 
used ? 133. What is the Sales-book ? How used ? How is the 
posting done ? What advantage is gained by the use of the 
Sales-book ? How often should the Sales-book be posted ? 


102 


massey’s modern book-keeping. 


EXAMINATION RECORD, SET SIX. 

Date.Teacher. 

Questions.Journal-Day-book. 

Ledger.Balance-sheet. 

Sales-book. .Cash-book. 

Business Papers.Bill-book... 


Note-book 


Stubs of 


Cash : 


( Draft-book. 

Bills Receivable. 

Dr. side. 

Cr. side. 

On hand. 

Date of commencing Set. 

Date finished. 

Total number of days. 

Re-work. 


On hand. 


In bank.. 

Bills Payable. 

Cr. side.. 

Dr. side.. 

Notes out. 


Copy. 


Statements rendered. 


f Mdse, box. 

Condition of-j Desk. 

[ Business Papers. 
































7ns7fK7nwflwnwrK *K*K 

1 SET SEVEN. I 

*5 |j{g 

v^ \u* s# v *sje MjtKpyje'iip vj* ^ v* *£ vg vj* VV H£ H£ 

*£*****1* vnsTn^TiNTfVsTnsTfcTns/fiv jouns^Tni /% ^in/tn x%7n^7n^7irs?fK7fK7rfc/0'5 

ORDER OF WORK. 

First.—Memorize pargraphs 134 to 151. 

Second.—Enter all practice work on pages 107 to 109 
in your “Practice Journal,” and submit to your teacher 
for examination. 

Third.—Carry out the Actual Transactions of Set Seven, 
entering all cash items in the Cash-Book, and notes in 
the Bill-book. 

Fourth.—Post to your “Good Ledger.” 

Fifth.—Make Balance-sheet and close your Ledger. 

Sixth.—Recite review questions on page 112. 

Seventh.—Submit all your books to your teacher for 
examination. 


104 


massey’s modern book-keeping. 


SET SEVEN. EXPLANATIONS AND DEFINITIONS. 

134. The object of Set Seven is to illustrate a simple 
form of keeping commission books. 

135. The books used are the Journal-Day-book, Cash¬ 
book and Ledger, with Bill-book and Check-book as aux¬ 
iliaries. 

136. Shipping 1 Business. When the proprietor of the 
business is engaged in buying goods and shipping them to 
others to be sold on his account, he is conducting a Ship¬ 
ping 1 Business. 

Commission and Shipping 1 . When the proprietor 

not only ships goods to be sold on his account, but also 
receives goods to be sold on commission, is said to be con¬ 
ducting both a Shipping and Commission Business. 

137. Shipments. When you ship goods to be sold on 
your account and risk, you open an account in your books 
with “Shipment” to represent the property which has 
passed from your possession. When several shipments 
are made to the same person or firm, you designate each 
by a number, thus: “Shipment to Southern Commission 
Co., No. 1.” The second shipment to this firm would be, 
“Shipment to Southern Commission Co., No. 2,” etc., 
each shipment to this firm having a different number. 

138. The person who ships goods to be sold on his ac¬ 
count and risk is the Consignor. 

139. The person receiving the goods is called the Con¬ 
signee. 

140. When the goods have been sold, a statement show¬ 
ing the sales and all charges, is rendered to the consignor, 
which is called Account Sales. 


massey’s modern book-keeping. 


105 


Fo^m of an Account Sales. 


Columbus, Ga., March 6, 1 89 4. 
For J. O. Manning, Dallas , Texas. 

Account Sales, 200 do{. Eggs. 

Sold by SOUTHERN COMMISSION COMPANY. 

Feb. 

8 

Sold *or cash , 200 doz . Eggs @ 20c 



40 




CHARGES. 






2 

Freight. . 

5 





8 

Storage. 

2 





8 

Commission, 10 % on sales. 

4 


11 




J. 0 . Manning's net proceeds , 



29 



141. The net proceeds is the difference between the 
total sales and total charges. 

142. Shipment accounts will show a Loss or Gain. If 
the statement is made of the business before receiving 
the “net proceeds” of a shipment, the value of the ship¬ 
ment is considered a resource inventory. 

143. Debit a shipment at the time the property is 
shipped, for its value or cost to you, and all expenses. 

144. Credit a shipment when an account sales is 
received. 

145. When goods are received by you to be sold on 
account and risk of other persons, it is called a consign¬ 
ment, and such an account would be opened in your 
Ledger to represent goods in your possession, but not 
your ownership. 

146. Different consignments are distinguished in the 
same manner as shipments, i. e., by number, thus: “R. 
W. Massey’s Consignment No. 1.” The next consignment 
received from R. W. Massey would be, ‘‘R. W. Massey’s 
Consignment No. 2.” 



















106 


massey’s modern book-keeping 


147. Consignments must always balance after the 
closing entry has been posted, debiting the “Consignment” 
for all charges and net proceeds. 

148. Should a statement of the business be made 
before closing a consignment, and the charges upon it at 
the time of making the statement exceed the sales, the 
excess would represent a Resource ; if the sales exceed the 
charges, the excess would be a Liability. 

149. Debit a consignment for all charges made when 
the property is received, and for all subsequent charges, 
as well as the net proceeds. 

150. Credit a consignment for all sales belonging to it. 

151. After you have debited the “Consignment” for all 
charges and net proceeds, it will Balance. 


massey’s modern book-keeping 


107 


SET SEVEN.. EXAMPLES FOR PRACTICE. 

(1) Student will now commence a Shipping and Com¬ 
mission business. 

(2) Bought by check, 100 Bbls. Fancy Flour at $3.00; 
100 Bu. Sweet Potatoes at 50c; 100 Bu. Irish Potatoes at 
$1.00; 180 Doz. Eggs at 10c. (Enter on Check-book.) 

(3) Shipped to Southern Commission Co., Mobile, Ala., 
to be sold on our account and risk, 180 Doz. Eggs, invoiced 
at 12c. per doz. Paid cartage by check, $5.00. (Dr. in 
Journal, Shipment to Southern Commission Co., No. 1, 
for the value of the Eggs, and Dr. in the Cash-book the 
cost of the cartage; Cr. Merchandise in the Journal for 
the value of the Eggs, and Cr. Cash in Cash-book for the 
amount paid for cartage. See Pages 104 and 105 ) 

(4) Shipped Fred Johnson & Co., New Orleans, to be 
sold on our account and risk, 50 Bbls. Fancy Flour, in¬ 
voiced at $3.00. Paid cartage in cash, $10.00. Make 
entries similar to preceding transaction. (See pages 104 
and 105.) 

(5) Shipped J. W. Pease & Sons, Chicago, to be sold 
on our account and risk, 50 Bbls. Fancy Flour, invoiced 
at $3.00. Gave check, $19.00, for cartage and insurance. 
(See pages 104 and 105.) 

(6) Received from C. A. Tingle & Co., Cedar Rapids, 
to be sold on their account and risk, 1000 Lbs. Fancy 
Coffee. Paid freight and cartage on same, $8.75, by 
check. (Dr. Tingle & Co.’s Consignment No. 1 for amount 
of charges.) (See Par. 149.) 

(7) Sold for cash, 500 Lbs. Fancy Coffee, at 22 cts., 
belonging to Tingle’s Consignment No. 1. (Cr. in Cash¬ 
book Tingle’s Consignment No. 1.) 

(8) Received from C. A. Tingle & Co., Cedar Rapids, 
(Consignment No. 2) to be sold on their account and 
risk, 2000 Lbs. Rice. Paid freight, $15.00, on same by 
check. 


108 


massey’s modern book-keeping. 


(9) Sold H. H. Daniel, on his note, payable in 60 days, 
500 Lbs. Fancy Coffee at 23c., belonging to Tingle’s Con¬ 
signment No. 1. 

(10) Closed C. A. Tingle & Co.’s Consignment No. 1, 
and rendered them an account sales. Storage charges, 
$2.75, commission 10 per cent, on sales. Net proceeds 
placed to their credit. (Dr. Tingle’s Consignment No. 1, 
$216.25, Cr., Storage $2.75, Cr. Commission $22.50, Cr. C. 
A. Tingle, $191.00, for net proceeds. 

(11) Sold Jacob & Hirsch, on account, 500 Lbs. of 
Rice at 4c., belonging to Tingle’s Consignment No. 2. 

(12) Shipped to Southern Commission Co. (shipment 
No. 2,) to be sold on our account and risk, 50 Bu. Sweet 
Potatoes, invoiced at 50c. Prepaid freight on same, 
$10.00, by check. (Dr. Shipment to Southern Commis¬ 
sion Co., No. 2. Cr. Merchandise and Cash.) 

(13) Received from Fred Johnson & Co., New Orleans, 
an account sales of Flour shipped to them on the 4th 
inst. Net proceeds, due in 60 days, placed to our credit, 
$185.00. (Dr. Fred Johnson <fc Co., and Cr. Shipment to 
Fred Johnson & Co., No. 1. See Par. 147.) 

(14) Sold David Hirsch, on account, 500 Lbs. Rice, at 
5c., belonging to Tingle’s Consignment No. 2. 

(15) Sold Baker, Benedict & Reynolds, half cash, bal¬ 
ance on account, 60 days, 500 Lbs. Rice at 5£c., belonging 
to Tingle’s Consignment No. 2. 

(16) Sold West-Bakefield Co., for cash, 500 Lbs. Rice, at 
5£c., belonging to Tingle’s Consignment No. 2. (Cr, Tingle 
Consignment No. 2 on Cash-book.) 

(17) Closed C. A. Tingle & Co.’s Consignment No. 2, 
and rendered them an account sales. Charged for stor¬ 
age, $5.00; commission, 12 per cent, on sales. Net pro¬ 
ceeds paid in cash. (Cr. C. A. Tingle & Co. in Journal for 
net proceeds, and Dr. them in Cash-book for the amount 
paid them for net proceeds.) 

(18) Received from Southern Commission Co., Mo¬ 
bile, an account sales of Eggs shipped to them on 3d inst. 


massey’s modern book-keeping. 


109 


Net proceeds, $18.00, remitted to us by New York draft. (Cr. 
Shipment to Southern Commission Co., No. l,on Cash¬ 
book.) 

(19) Received from J. W. Pease’s Sons, Chicago, an ac¬ 
count sales of Flour shipped tothemon5thinst., and their 
note for $180.00, payable in 30 days. 

(20) Shipped J. W. Pease’s Sons, Chicago, 200 Doz. 
Eggs, which we bought to-day @ 12|c., giving our check 
for same. Prepaid freight, $5.00, in cash. 

(21) Sold Lewis & Gregory, for cash, 25 Bu. Sweet 
Potatoes @ 75c. 

(22) Sold Henry & Ingram, on their 60 day note, 25 
Bu. Sweet Potatoes @ 65c. 

(23) Bought by check, 180 Doz. Eggs @ 15c. 

(24) Sold for cash, 90 Doz. Eggs @ 16£c. 

(25) Bought by check, 250 Doz. Eggs @ 16c., and 
shipped the same to Southern Commission Co., Mobile, 
to be sold on our account and risk. (Shipment No. 3.) 

(26) Received from Curtis, Philips & Lang, Camden, 
to be sold on their account and risk, 500 Gals. Florida 
Syrup. Paid freight on same by check, $100.00. 

(27) Received from J. W. Pease’s Sons, Chicago, an ac¬ 
count sales of Eggs shipped on 20th inst. They request 
us to draw at sight for $20.00, the amount of our net pro¬ 
ceeds. Drew draft and deposited at Bank for collection. 

(28) Sold Walter Baker & Co., for cash, 250 Gals, of 
Florida Syrup, belonging to Curtis, Philips & Lang’s Con¬ 
signment No. 1, @ 25c. 

(29) The Bank informs us that our draft drawn on J. 
W. Pease’s Sons on 27th inst., has been paid and the 
amount, less 25 cents collection charges, placed to our credit. 

(30) Walter Baker & Co. claim a rebate of 12^ per 
cent, on the Florida Syrup bought of us on the 28th 
inst., on account of inferiority of the goods. We allow 
the rebate and give our check for the amount. (Dr. Curtis, 
Philips & Lang’s Consignment No. 1.) 


no 


massey’s modern book-keeping. 


(31) A fire in our warehouse destroyed the remaining 
250 Gals, of Florida Syrup belonging to Curtis, Philips 
& Lang’s Consignment. No insurance. 

(32) Informed Curtis, Philips & Lang of the loss by 
fire, and that we have charged the amount due us on their 
consignment to their account. 

(33) Inventories- Shipment to Southern Commission 
Co. Nos. 2 and 3. (See Par. 148.) Merchandise on hand 

$150.10- 


massey’s modern book-keeping. 


Ill 


* SET SEVEN. 

MEMORANDA FOR ACTUAL TRANSACTIONS. 

(151) You will now engage in the Shipping and Com¬ 
mission business by investing the Resources and Liabilities 
as shown by your Ledger at the close of Set Six. 

Give check $50.00, for one month’s rent. 

(152) Deliver to the Commission house (or your 
teacher if the Commission house is notin operation), a 
bill of goods to be sold on your account and risk. 

(153) Receive from R. W. Massey & Co., an invoice of 
merchandise to be sold on their account and risk. Give 
check for $5.00 for drayage. 

Note.—When goods are received by you to be sold on the 
account and risk of others, place them in an envelope and mark 
them properly. 

(154) Receive from any student an invoice of Mdse, to 
be sold on his account and risk. Give check, $2.00, for 
drayage. 

(155} Receive from your teacher an invoice of Mdse, to 
be sold od his account and risk. Store the goods in your 
warehouse and give check, $10.00, for insurance on same. 

(156) Sell for cash, part of R. W. Massey & Co.’s Con¬ 
signment No. 1. 

(157) Receive from R. W. Massey & Co. (Massey’sCon¬ 
signment No. 2) an invoice of Mdse, to be sold on their 
account and risk. 

(158) Sell for cash balance of goods belonging to R. W. 
Massey & Co.’s Consignment No. 1, and render them an 
account sales. Charge 10 per cent, for commission, and 
give your check for the amount of their net proceeds. 

(159) Sell for note, 10 days, part of Student’s Consign¬ 
ment No. 1. (See transaction No. 154.) 

(160) Sell for cash, 15 per cent, below market price, 
Mdse, belonging to your teacher’s Consignment No. 1, 
(See transaction No. 155) and render him an account sales. 
Charge him 15 per cent, for commission, 1 per cent, for 
storage, and give him check for the amount of net proceeds 


112 


MASSEY S MODERN BOOK-KEEPING. 


(161) Sell for cash balance of Mdse, belonging to Stu¬ 
dent’s Consignment No. 1, and render him an account 
sales. Charge 10 per cent- on gross sales for commission, 
1 per cent, for insurance, and 1 per cent, for storage. Give 
him your 5 day note for the amount of his net proceeds. 

(162) Sell on account, 10 days, 10 per cent, below mar¬ 
ket price, Mdse, belonging to R. W. Massey & Co.’s Con. 
signment No. 2, and render them an account sales. Charge 
8 per cent, commission, and 1 per cent, for guaranty. Give 
check for the amount of their net proceeds. 

(168) Receive from any student an invoice of Mdse, to 
be sold on their account and risk. Buy part of this Con¬ 
signment for your private use, and charge the amount to 
yourself. 

(164) Call at Commission house for an account sales of 
shipment sent in transaction 152. Receive check for the 
amount of your net proceeds. 

(165) Re-ship to A. Student balance of Mdse, belong¬ 
ing to his Consignment received in transaction 163. Ren¬ 
der an account sales for the part sold. Charge 10 per 
cent, commission, and give them check for the amount of 
their net proceeds. 

Make an inventory of goods on hand. Post, make Trial 
Balance-sheet. Close your Ledger and present to your 
teacher. You may then prepare yourself for an examina¬ 
tion upon the following 

REVIEW QUESTIONS. 

134. What is the object of Set Seven ? 135. What books are 
used? 136. What is a Shipping business ? What is a Commission 
and Shipping business ? 137. What is done when you receive a 
Shipment? 138. Who is the Consignor? 139. Who is the Con¬ 
signee ? 140. What is an Account sales ? 141. What is meant by 
Account sales ? 142. Will Shipment Accounts show a loss or a 
gain? 143. For what do you debit a Shipment? 144. What 
credited ? 145. What is a Consignment ? 146. How are the 

different Consignments distinguished ? 149. For what is a Con¬ 
signment debited ? 150. For what credited? 151. When will a 
Consignment balance? 


massey’s modern book-keeping. 


113 


EXAMINATION RECORD. SET SEVEN. 

Date. Teacher. 

Questions. J ournal -Day-book... 

Ledger. Balance-sheet. 

Cash-book. Bill-book. 

Business Papers. Cash on hand. 

Notes on hand. Notes outstanding.. 

Statements rendered. 

Re-work. 

.Copy. 

Date of commencing Set. 

Date finished. 

Total number of days. 




















AA^^^AA^^jnsAymAATfNAAA/KAAAA 

JSET EIGHT.I 

A/wiNJ r A A A A A A A A A 

ORDER OF WORK. 

First.—Memorize paragraphs 152 to 162, inclusive. 

Second.—Enter all the Practice Work on pages 116 and 
117 in your “Practice Cash-book’’ and “Practice Journal,” 
Rule and foot these books and submit to your teacher. 

Third.—Carry out the actual transactions of Set Eight, 
entering all cash in Cash-book, other entries in Journal- 
Day-book, and notes in Bill-book. 

Fourth.—Post your “Good” books to “Good Ledger.” 

Fifth.—Make Balance-sheet and close Ledger. 

Sixth.—Recite to your teacher review questions on 
page 121. 

Seventh.—Submit all your books to your teacher for 
examination and final grade. 


massey’s modern book-keeping. 


115 


SET EIGHT. EXPLANATIONS AND DEFINITIONS. 

152. The object of Set Eight is to illustrate single 
entry book-keeping, and the manner in which the same 
may be changed to double entry. 

153. The Books used are the Journal-Day-book, Cash¬ 
book, Ledger, Bill-book and Check-book. 

154. Single Entry. In single entry personal accounts 
only are kept in the Ledger; therefore, only personal 
accounts should be journalized. 

155. Journalizing. In journalizing in single entry, it 
is necessary to write Dr. or Cr. after each entry, as there 
is no corresponding debit or credit item. 

156. Posting. All posting is done from the Journal. 
A record of notes and drafts is usually kept in the Bill- 
book, and cash received and paid out in the Cash-book; 
and other books of record may be used to meet the de¬ 
mands of the business. In no case, however, is posting 
done from these books. 

157. Resources. The Resources of a business kept by 
single entry can be ascertained by taking the balance of 
personal accounts due the proprietor according to the 
Ledger, and adding to the total of these amounts, cash on 
hand, the amount of Bills Receivable and the value of all 
inventories. 

158. Liabilities. The Liabilities can be found by 
adding the amount due other persons to the value of 
Bills Payable. 

159. Present Worth. Subtract the amount of the 
Liabilities from the Resources, and the difference will give 
the proprietor’s Present Worth. 

160. The Net Gain or Loss. The Present Worth, com¬ 
pared with the investment, or Present Worth at a former 
time, will show the Net Gain or Loss. As no Loss and Gain 
accounts are kept in the Ledger, the source of the Gain or 
Loss cannot be ascertained, as in double entry. 

161. Changing the Books to Double Entry. The 
first step to be taken is to make out a statement of Re- 


116 


massey’s modern book-keeping. 


sources and Liabilities; then make a Journal entry, 
debiting the Resources and crediting the Liabilities. 

Subtract the total Liabilities from the sum of the Re¬ 
sources, and the difference will be the proprietor’s Pres¬ 
ent Worth, for which you credit. This balances the 
Journal entry. 

162. As personal accounts only are kept in the 
Ledger in single entry book-keeping, it becomes necessary, 
in changing to double entry, to open accounts for all 
things that show the Resources and Liabilities which have 
been omitted and also for those showing the losses and gains. 

SET EIGHT. EXAMPLES FOR PRACTICE. 

To be carefully written on Journal paper, using one 
sheet for Cash-book, one for the stub of the Check-book, 
one for the Journal. These transactions are not to be 
posted. 

(1) A. Student commenced business with the following 
resources: Cash, $1,500.00; Mdse, on hand, $1,000.00. (En¬ 
ter in Journal-Day-book and Cash-book. See forms of 
these books on page 118. See paragraph 155.) Paid one 
month’s rent in cash, $100.00. (Enter in Cash-book.) De¬ 
posited in Bank, $1,400.00. (No Journal entry required. 
Place on stub of Check-book.) Bought of J. A. Kirven 
& Co., Columbus, invoice dated Jan. 1st, 60 Bbls. Fancy 
Flour, 25 Bu. Irish Potatoes. (See Journal, page 118.) 
Gave check for freight, $6.75, on Mdse, received from J. 
A. Kirven & Co. (Enter in Cash-book only.) 

(2) Sold Percy D. Adams, on account, 10 Bbls. Fancy 
Flour. Sold James Andrew, for cash, 125 Lbs. Choice 
Coffee, 125 Lbs. Fancy Coffee. (Enter in Cash-book.) De¬ 
posited in Bank, $75.00. Sold Agar & Hamblin, on account, 
125 Lbs. Choice Coffee, 100 Lbs. XXX Crackers. Small 
cash sales, $85.00. Paid advertising bill, $10.00. Balance 
Cash-book. (See Cash-book, page 118.) 

(3) Sold E. Eustis&Co., on account, 250 Lbs. Stick 
Candy, 10 Bbls. Fancy Flour. Sold Thos. Gilbert, on ac- 


massey’s modern poor-keeping. 


117 


count, 200 Lbs. Cheese. Sold Williams & Co., on account 
100 Lbs. Rice. 

(4) Received of Thos. Gilbert, his check in full of 
account. 

(5) Deposited $50.00 cash in Bank. 'Sold Roger Bros., 
for cash, 10 Bbls. Fancy Flour. Prepaid freight on same, 
$5.00, by check, and charged to their account. Sold Chas. 
Boyd, one-half cash, one-half on account, 125 Lbs. Choic e 
Coffee, 75 Lbs. XXX Crackers. (Dr. Boyd for total in¬ 
voice in Journal; Cr. him in Journal for amount received.) 
Received of E. Eustis & Co., their check in full of account. 
Sold E. A. Hyder, on his note, 60 days, 200 Lbs. Rice. 
Bought of Snyder & Co., on our note, 60 days, 100 Bu. 
Irish Potatoes. 

(6) Discounted Ryder’s- note at Bank, and had amount, 
less 62 days discount, placed to our credit. Bought of 
Snyder & Co., on account, 250 Lbs. Fancy Candy. Sold 
R. S. King, on account, 100 Lbs. Stick Candy. Paid Sny¬ 
der & Co., $10.00 on account, by check. 

(7) Sold Jep Chaffin, on his 30 day note, 10 Bbls. Fancy 
Flour. Paid for office safe, $100.00, by check. Discounted 
our 60 day note in favor of Students’ Commercial Bank, 
and had amount, less discount, placed to our credit. 

(8) Sold I. E. Cross, on account, 180 Doz. Eggs. Bought 
of Purser & Straus, by check, 16 Bbls. Fancy Flour. Sold 
M. Straus, on account, 100 Lbs. Rice. 

(9) Received from I. E. Cross, a New York draft for the 
amount of his account, less 1 percent, discount. (Enter 
only the amount of cash received in the Cash-book.) 

(10) Sold M. E. Hochstrasser, for cash, 25 Bbls. Family 
Flour. Deposited in Bank, $100.00. Sold Dave Hirsch, 
on account, 250 Lbs. Choice Coffee, 125 Lbs. Fancy Coffee. 

(11) Drew on Dave Hirsch, at sight, for one-half the 
amount of his account, and deposited the draft in the 
Bank to our credit, less 15 cents for collection charges. 
Paid sundry expense bills by check, $10.00. 

Note.— Balance, rule and foot up your Cash-book. Present 
your books for examination. 


118 


MASSEY’S MODERN BOOK-KEEPING. 


SINGLE ENTRY JOURNAL, SET EIGHT. (DATE.) 


1 

A Student, 

Cr. 



2500 


Investment of Mdse. 


1000 




Cash, 1,500.00. 


1500 



1 

J. A. Kirven & Co., 
Bought on acc’t: 

Cr. 



290 


60 Bbls. Fancy Flour , @ 4. 

240 




25 Bu. Irish Potatoes , @ 2. 

50 



2 

P. D. Adams, 

Soid on acc’£: 

Dr. 



47 


10 B6Zs. Fancy Flour, @ 4.75. 




2 

Agrar Hamblin, 

Sold on Acc't: 

Dr. 



35 


125 X&s. Choice Coffee, @.20 

25 




100X6s. XXX Crackers, @ .10 

10 




SINGLE ENTRY CASH-BOOK. 

Receipts. Payments. 


Mar. 

1 

Investment of A. Student: 

1500 






Paid rent for one month, 



100 




Paid freight , 



6 

75 


2 

Cash sales, 

75 





2 

Cash sales, 

85 





2 

Advertising bill, 



10 




Cash on hand (red ink), 



1543 

25 




1660 

00 

1660 

00 


3 

Cash on hand (black ink), 

j 1543 

25 



































massey’s modern book-keeping. 


119 


' SET EIGHT. 


MEMORANDA FOR ACTUAL TRANSACTIONS. 

(166) Give check, $50.00, to your teacher for one month’s 
rent. 

(167) Buy Mdse, by check. 

(168) Sell Mdse, on account. 

(169) Sell Mdse, half cash, half note, 10 days. 

(170) Buy Mdse, half cash, half note, 10 days. 

(171) Sell Mdse, on account. 

(172) Sell Wholesale House, 10 per cent, above market 
price, Mdse. 

(178) Sell Southern Commission Co., 5 per cent, above 
market price, Mdse. 

(174) Sell Mdse, on account 15 days. 

(175) Draw 15 day sight draft on account of Mdse, 
sold in transaction 174, and discount at Bauk, receiving 
proceeds in cash. 

(176) Sell Mdse., quarter note, balance on account. 

(177) Buy Mdse, on acc’t. 

(178) Buy from Wholesale House 5 per cent, below 
market price, Mdse. 

(179) Sell Mdse., note 15 days, no interest. 

(180) Discount at Bank note received in transaction 
179, and have proceeds placed to your credit. 

(181) Sell Mdse, on account 20 days. 

(182) Draw 20 day sight draft on acc’t of Mdse, sold in 
transaction 181, and sell to Wholesale House at 8 per 
cent, discount. Have proceeds placed to your credit. 

(188) Buy Mdse, on account. 

(184) Sell Mdse, on account. 

(185) Sell Mdse, on account. 

(186) Buy Mdse, with certified check. 

(187) Sell Mdse, for certified check. 

(188) Sell Mdse, for demand note. 

(189) Buy Mdse, on account, subject to sight draft. 

(190) Buy Mdse, with cash. 



120 


MASSEY S MODERN BOOK-KEEPING. 


Note.—The student will now prepare to change his books from 
single to double entry. Study paragraph 161. Prepare on a 
sheet of paper a statement like the following, using of course, the 
proper figures : 

STATEMENT. (DATE.) 


RESOURCES. 

Personal AccHs Receivable,per Ledger, 
Bills Rec ., per Bill-book, 

Cash, per Cash-Book , 

Mdse., per Inventory, 

Furniture and Fixtures , “ “ 

Total, 

LIABILITIES. 

Personal Acc’ts Payable, m per Ledger, 
Bills Payable, per Bill-book, 

Total, 

Present Worth, 

Invested, 

Net gain, 


Note 1.—The Present Worth is found by subtracting the sum 
of the Liabilities from the sum of the Resources; and the Net Gain 
is found by subtracting the Net Credit from the Present Worth. 

Note 2. Change your books to Double Entry by complying 
with paragraph 161, and submit to your teacher. 

Note 3.—Post from your statement to your Ledger and take 
Trial-balance, which submit to your teacher for approval. Hav¬ 
ing changed to Double Entry, you will proceed to carry out the 
following transactions : Use the Cash-book, Journal-Day-book, 
Check-book and Bill-book, as employed in double entry book¬ 
keeping. 

(191) Buy Merchandise on account. 

(192) Sell Merchandise for check. 

(193) Sell Merchandise on note, 20 days. 

(194) Discount at Bank note received in transaction 
193, and have proceeds placed to your credit. 

(195) Sell Merchandise on account. 

















massey’s modern book-keeping. 121 

(196) Draw a 20-day sight draft on firm sold to in trans¬ 
action 195, and discount at Bank, having proceeds placed 
to your credit. 

(197) Sell all Merchandise on hand to Wholesale House. 

(198) Pay all Bills Payable outstanding that are due. 
Discount all notes that are not due. 

(199) Collect cash for all Bills Receivable outstanding. 

Note.—Allow discount on notes not due. 

(200) Make settlements with all firms that have open 
accounts on your Ledger. 

Note.—Balance, foot and rule your Cash-book. Post all 
books to your Ledger. Make Balance-sheet and close Ledger. 
Have your Bank-book balanced. Submit all of your books to your 
teacher for examination. Prepare to recite review questions of 
this set. 


REVIEW QUESTIONS. 

Define Single Entry ? What is the distinguishing feature of 
Single Entry? How are personal accounts journalized in Single 
Entry ? How is the posting done in Single Entry ? From what 
does Single Entry take its name ? Are the footings of the two 
sides of a Single Entry Ledger generally equal? Can a Trial-bal¬ 
ance of a Single Entry Ledger be taken ? Why cannot an item¬ 
ized statement of the gains and losses of a business be obtained 
from a set of Single Entry books? Can the Net Gain or Net Loss 
be determined when the books are kept by Single Entry ? What 
records are absolutely required in Single Entry ? Why are other 
records made ? What are they ? What books are generally used 
in Single Entry ? How do the forms of these books compare with 
those in Double Entry ? Describe the Day-book ? How should 
a mistake made in an original entry be corrected ? Are erasures 
permissible in books of original entry? Describe the Cash-book. 
What is the design of Set Eight? How is the Present Worth 
found in Single Entry? How the Net Gain? How the Net Loss? 


122 


massey's modern book-keeping. 


EXAMINATION RECORD, SET EIGHT. 

Date.Teacher. 

Journal-Day-book.Single Entry Cash-book 

Double Entry Cash-buok .Ledger. 

Single Entry Statement.. 

First Trial-balance.Second Trial-balance. 

Third Trial-balance.Bill-book. 

Business Papers.Condition of Desk. 

Questions.Bank-book. 

Date Commencing Set.Date Finished... 

Total number of days. 

Copy.. 


Re-work 






















ADVANCED PART 


S SET NINE.S 

suf H/VVVVVVVVVVV^W^VWV 
7fK^k?*K7iit*k4nk?fc^iV»?fnk7nt7f\7fc7fft?TK7TN7ut7fTi7irc7(K7i”'inN 

EXPLANATIONS AND DEFINITIONS. 

163. The Object of Set Nine is to illustrate the In¬ 
voice-book. 

164. The Books used are the Journal-Day-book, Cash¬ 
book, Invoice-book, Ledger, Bill-book and Check-book. 

165. The Invoice-book does not differ materially 
from the Sales-book in form, and is used to contain a rec¬ 
ord of all purchases made. The several items in this book 
are posted to the credit of the persons’ account unless the 
purchase is for cash, in which case the entry is checked 
(l/) in the Invoice-book and entered in the Cash-book. 
At the end of the set or month the total of this book is 
posted to the debit side of Merchandise account. 



124 


massey’s modern book-keeping. 


SET NINE. 

MEMORANDA FOR ACTUAL TRANSACTIONS. 

(201) Lease a new store, No.-Broad St., from your 

teacher for one year at an annual rental of $600.00, pay¬ 
able monthly in advance. 

Note.—Fill out lease and present to teacher for examination. 

(202) Give check for first month’s rent. 

(203) Borrow from Bank $2,000.00 on your note, in¬ 
dorsed, payable 60 days from date. 

(204) Order bill of Mdse, from Firm No. 12. 

(205) Order bill of Mdse, from Firm No. 13. 

(206) Get your stock of goods insured for $1,000.00. 
Present policy, properly filled out (see form at teacher’s 
desk) to your teacher for his signature. Pay $10.00 for 
premium. Give check. 

(207) Sell Mdse for cash to Wholesale House. 

(208) Sell Mdse, for note, 5 days, interest 6 percent. 

(209) Sell Mdse, on account, 1 day. 

(210) Buy Mdse., paying one-half by check, giving your 
note, at 10 days, for balance; no interest. 

(211) Sell Mdse., half note, half on account. 

(212) Sell Mdse, for check. 

(213) Order Mdse, on account from Firm No. 14. 

(214) Sell Mdse, for cash. 

(215) Order bill of Mdse, from Firm No. 15. 

(216) Order bill of Mdse, from Firm No. 16. 

(217) Sell Mdse, to Wholesale House, and receive in 
payment their sight draft on a third party. 

(218) Obtain at Bank certificate of deposit for $100.00 
by presenting your check for the same. No Journal entry 
required. 

(219) Buy Mdse, for cash. 

(220) Order bill of Mdse, from Firm No. 17, and enclose 
certificate of deposit received in transaction 218 as part 
payment. 

(221) Buy Mdse, on account. 

(222) Sell Mdse, and receive certified checkin payment. 



MASSEY S MODERN BOOK-KEEPING. 


125 


(223) Ship to Southern Commission Co. invoice of Mdse, 
to be sold on your account and risk; proceeds to be re¬ 
mitted by Bank draft. 

(224) Ship to some student invoice of Mdse, to be sold on 
your account and risk ; proceeds to be placed to your credit- 

(225) Sell Mdse, on account, subject to sight draft. 

(226) Draw a 10 day sight draft for the above, and leave 
at Bank for collection. 

Note.—Make a memorandum only. When Bank notifies you 
that the draft has been paid, make entry. 

(227) Buy Mdse, on account. 

(228) Buy Mdse, on account, 

(229) Buy Mdse, and give certified checkin payment. 

(230) Buy Mdse., half note, half on account. 

(231) Buy Mdse, with check. 

(232) Buy Mdse., and give in payment certified check. 

(233) Buy Mdse, on account. 

(234) Buy Mdse, for cash. 

(235) Buy Mdse, for cash. 

(236) Sell Mdse, on account. 

(237) Buy Mdse, and give in payment certificate of 
deposit. 

Note.—Buy certificate of deposit at Bank. 

(23S) Order Mdse, on account from student No. 19. 

(239) Buy bank draft and remit to firm, in full account 
for Mdse, bought in transaction 238. 

(240) Sell Mdse, for 5 day note. 

(241) Buy Mdse, on account, subject to sight draft. 

(242) Sell Mdse, and receive in payment certificate of 
deposit. 

(243) Sell Mdse, and receive in payment certified check. 

(244) Buy Mdse. Give 5 day note, with interest. 

Have all books and papers examined; post, make Trial- 

balance and close your Ledger. 

Buy bank drafts and remit to all foreign parties whom 
you owe. (Write letters.) 

Have your Bank-book balanced and see that your 
balance agrees with the stub of your Check-book. 

Render a statement to all persons who owe you. Com¬ 
pare accounts with the wholesale and commission houses. 


126 


massey’s modern book-keeping. 


EXAMINATION RECORD, SET NINE. 

Date.Teacher. 

Journal-Day-book.Cash-book. 

Invoice-book.Ledger... 

Bill-book.Bank-book. 

Check-book.Note-book. 

Business Papers.Trial-balance. 

Second Trial-balance. 

Copy. 

Re-work. 

















massey’s modern book-keeping. 


127 


SET TEN. EXPLANATIONS AND DEFINITIONS. 

166. The books used are the Journal-Day-book, Cash¬ 
book, Sales-book, Bill-book, Check-book and Ledger. 

SET TEN. 

MEMORANDA FOR ACTUAL TRANSACTIONS. 

(246) Pay one month’s rent. 

(244) Write a circular letter to each firm in your di¬ 
rectory, advising them of the kinds of Merchandise you 
have on hand for sale, and stating in what quantities each 
may be sold. Do not quote prices, but state that you will 
charge the local market prices that are in effect on the 
day of sale. You need not take press copies of these cir¬ 
cular letters, as they contain no special offer. 

(248) Buy Mdse, on acc’t. 

(249) Order Mdse, of Firm No. 20, and ask them to 
deduct their best cash discount and send goods with draft 
attached to bill of lading. 

(250) Buy Mdse, for cash. 

(251) Order Mdse, of Firm No. 21, inclosing bank 
draft for about one-half of the amount ordered, estimated 
at present local quotations. Ask them to charge the bal¬ 
ance of the bill to your account. 

(252) Make a consignment of Tea and Coffee to Southern 
Commission Co , and ask that proceeds be remitted in 
cash. 

(258) Order Mdse, of Firm No. 22, asking for their 
best cash discount, if bill is paid within three days from 
receipt of the goods. 

(254) Make consignment to Firm No. 23, to sell for you 
on commission. Use your discretion as to the quantity, 
observing the limitations as to making sales. Prepay the 
freight on this shipment when you take it to the Freight 
Office. Ask them to give you credit for the proceeds of 
this sale subject to your sight drafts. 

Review your work for the day carefully, to see if all 
necessary transactions have been completed. 



128 


massey’s modern book-keeping. 


(255) Order of Firm No. 24, Mdse., asking the firm to 
draw on you at three days sight for the amount of the 
bill, and you will accept and return draft. 

(256) Order a quantity of Mdse, of Firm No. 25. Have 
your check certified at Bank for about one-half the amount 
of this order, estimated at the present buying quotations, 
and enclose this check with your order, asking No. 25 to 
allow their cash discount on the entire bill and draw on 
you at sight for the balance unpaid. 

(257) Buy Mdse, on acc’t. 

(258) Sell Mdse, for cash. 

(259) Sell Mdse, for sight draft. 

(260) Pay your teacher cash for postage and stationery, 
$5 50. Order of Firm No. 26 Mdse. Enclose your check 
for $25.00 or $50.00 payable to Firm No. 26, asking them to 
discount the entire bill and enclose a note at five days in 
their favor for the balance unpaid, bearing interest at the 
current rate, which you will sign and return. 

(261) Make a consignment to Firm No. 27, to sell for 
you on commission, directing them to place the proceeds 
to your credit, subject to sight drafts which you may draw. 
Send a quantity of your Mdse. 

(262) Order a quantity of Mdse, from Firm No. 28, en¬ 
closing your sight draft on Firm No. 27 for the consign¬ 
ment sent in transaction 261. Ask Firm No. 28 to give you 
credit for the amount of the draft, and leave the balance 
of the invoice on account for five days. 

(268) Sell Mdse, to Wholesale House, and take in pay¬ 
ment their note at sixty days, with 6 per cent, interest, 
for the same. 

(264) Discount note received in transaction 263 at 
Bank, and have proceeds placed to your credit. 

(265) Buy Mdse, of Southern Commission Co. and draw 
a time draft on some student owing you for part, and sight 
draft on another firm for the balance. 

(266) Order Mdse, of Firm No. 29 and request them to 
draw at sight for the amount. 


massey’s modern book-keeping. 


129 


(267) Order Mdse, of Firm No. 30 and request them to 
ship goods with draft attached to bill of lading. 

(268) Order Mdse, of Firm No. 31 and request them to 
charge to your account at 15 days. 

(269) Order Mdse, of Firm No. 32 and enclose bank 
draft in part payment. 

(270) Buy Mdse, and give in payment a 10 day note, 
less 2 per cent, discount. 

(271) Sell Mdse, to Southern Commission Co. for 10 
day note. 

(272) Buy Mdse, and give in part payment note received 
in transaction 271 

(273) Buy of Commission House bill of Mdse., and give 
in payment certificate of deposit (obtained from Bank for 
your check) for part, and sight draft on some student 
owing you for balance. 

(274) Buy Mdse, on account. 

(275) Sell Mdse, on account, 10 days. 

(276) Draw 10 day sight draft for amount of Mdse, 
sold in transaction 275, and discount at Bank. 

(277) Withdraw for private use $15.00 by check. 

(278) Sell Mdse, and receive in payment demand note. 

(279) Sell Mdse, on account, 15 days. 

(280) Discount bill sold in transaction 279, one per cent., 
and receive in payment cash. 

(281) Ship to Southern Commission Co. invoice of 
Mdse., to be sold on your account and risk. 

(282) Prepay freight charges on shipment made in trans¬ 
action 281. 

(283) Sell Mdse, on account. 

(284) Buy Mdse, on account. 

(285) Sell Mdse, on account. 

(286) Buy Mdse, subject to sight draft. 

(287) Buy Mdse, and give in payment demand note. 

(288) Order Mdse, on account of Firm 33. 

(289) Buy Mdse, and give certified check in payment. 

(290) Buy bank draft for $50.00 and remit to Wholesale 
House to apply on account. 


130 


MASSEY’S MODERN BOOK-KEEPING. 


(291) Buy Mdse, on account, 10 days. 

(292) Sell Mdse, and receive in payment a 10 day note, 
less 2 per cent, discount. 

(293) Buy Mdse, for cash. 

(294) Sell Mdse, on account. 

Have Bank-book balanced. 

Post, make Balance-sheet and close Ledger. Have all 
books and papers examined. 

Compare accounts with Southern Commission Co. and 
Wholesale House. 

Render statements to ail firms owing you. 

Buy bank drafts and remit to all foreign firms whom 
you owe. 


MASSEY S MODERN BOOK-KEEPING. 131 

EXAMINATION RECORD, SET TEN. 


Date. 

..Teacher. 

Statements rendered.. 


Bank and Check-books.. 


Bill-book. 



Orders mailed.Stubs of Draft and Note-books 

Consignments made. 

Drafts remitted to foreign firms. 


Journal-Day-book. 

.Cash-book. 

Sales-book. 

.Bill-book. 

Ledger. 

........ .Trial-balance. 

Second Trial-balance .... 

.Statements rendered. 


Date of commencing Set 


Date finished. 

Total number of days 

























132 massey’s modern book-keeping. 

SET ELEVEN. EXPLANATIONS AND DEFINITIONS. 

167. The object of Set Eleven is to introduce the 
Customers’ Ledger. 

168. The books used are the Journal-Day-book, Cash¬ 
book, Sales-book, Customers’ Ledger, General Ledger, 
Check-book, and Bank-book. 

169. The Customers’ Ledger is a special ledger in 
which customers’ accounts only are posted. This book 
does not differ from any Doable Entry Ledger. Customers’ 
Ledgers are employed by large firms having many open 
accounts, where it is desired to have the accounts of cus¬ 
tomers condensed and separated from the General Ledger. 

Note.—Transfer to your Customers’ Ledger all accounts of 
your customers. 

(295) Order Mdse, of Firm No. 34, and request them to 
charge to your account. 

(296) Order Mdse, of Firm No. 35, and enclose bank 
draft in part payment. 

(297) Buy Mdse, for check. 

(298) Write a note for $1200.00 payable to.(any 

student); have him.(student) indorse it and return 

to you, then discount the note at the Bank and have pro¬ 
ceeds placed to your credit. 

(299) Buy a R. R. Bond for $1000.00 of your teacher, 
and give in payment check. 

Note.—On Monday of each week present a coupon to the 
Bank and have same cashed. 

(300) Pay one month’s rent. 

(301) Sell bill of Mdse, and take in payment a 10 day 
note, less 5 per cent, discount. 

(302) Sell Mdse, on account. 

(303) Buy Mdse, and give in payment 15 day note. 

(304) Draw a sight draft on some firm owing you for 
balance of their account; sell at £ per cent, discount, and 
receive in payment for net proceeds bank draft in favor of 
Wholesale House. 

(305) Deliver to Wholesale House, to apply on account 
draft purchased in transaction 304. 




massey’s modern book-keeping. 


133 


(306) Sell Mdse, for'check. 

(307) Sell Mdse, and receive in payment check for one- 
fourth, note for one-fourth, sight draft on some student 
for one-fourth, balance on account. 

(308) Borrow $2000.00 of your teacher, giving your 
note, indorsed, payable 30 days from date, with 6% 
interest. 

(309) Buy Mdse, and give in payment an order on. 

(student), on account of sale in transaction 302. 

(310) Order Mdse, of Firm 36, enclosing certificate of 
deposit in part payment, and requesting them to draw on 
you at two days sight for the balance. 

(311) Sell Mdse, and receive in payment a 15 day note. 

(312) Buy Mdse, on account. 

(313) Buy Mdse, and give in payment sight draft on 
yourself. 

(314) Sell Mdse, on account 

(315) Order Mdse, of Firm 37. 

(316) Order Mdse, of Firm 38. 

(317) Order Mdse, of Firm 39. 

(318) Order Mdse, of Firm 40. 

(319) Order Mdse, of Firm 41. 

(320) Buy Mdse, on account. 

(321) Sell Mdse, on account. 

(322) Draw sight draft on firm sold to in transaction 
321, and leave at Bank for collection. 

(323) Sell Mdse, on account, five days. 

(324) Draw 5 day sight draft on firm sold to in trans¬ 
action 323, and leave at Bank for collection. 

(325) Sell Mdse. 

(326) Sell Mdse. 

(327) Sell Mdse. 

(328) Buy Mdse, and give in payment sight draft on 
yourself. 

(329) Sell Mdse, and receive in payment 5 day note. 

(330) Sell Mdse, and receive in payment demand note. 

(331) Sell Mdse, and receive in payment a non-negoti- 
able note. 



184 


massey’s modern book-keeping. 


(332) Sell Mdse, and receive in payment an order pay¬ 
able in Mdse. 

(333) Sell Mdse, and receive in payment sight draft. 

(334) Sell Mdse on account. 

(335) Buy Mdse, and give in payment 15 day note. 

(336) Buy house and lot, No. 68 Broad street, and give 
in payment cash, $1,000.00, and five notes for $1,000.00 
each, and payable semi-annually, with 6 per cent, interest. 
(Write deed, notes, and mortgage and present to your 
teacher.) 

(337) Buy Mdse. 

(338) Sell Mdse. 

(339) Buy Mdse. 

(340) Buy Mdse, and give in payment an order on 
yourself, payable in Mdse. 

(341) Buy Mdse, and give in payment non-negotiable 
note. 

(342) Buy Mdse, and give in payment demand note. 

(343) Buy Mdse. 

(344) Sell Mdse. 

(345) Buy Mdse and give in payment 5 day note. 

(346) Buy Mdse, on account. 

Have Bank-book balanced. 

Post, make Balance-sheet, close Ledger, and present all 
books and papers for examination. 

Compare accounts with Bank, Wholesale and Com¬ 
mission House. This is Important. 

Render statements to all firms owing you. 


massey’s modern book-keeping. 135 

EXAMINATION RECORD. SET ELEVEN. 


Date. 

...Teacher. 

Statements rendered... 


Bank and check-book.. 



Bill-book.Business Papers. 

Orders mailed.Stubs of note and draft books 


Journal-Day-book. 


Sales-book. 

...Merchandise box. 

Ledger. 

...Customers’ ledger. 

R. R. Bond. 

....Deed and Mortgage. 

Trial-balance. 

....Second Trial-balance. 


Date of commencing Set. 


Date of finishing Set. 
Total number of days 

























136 


massey’s modern book-keeping. 


SET TWELVE. EXPLANATIONS AND DEFINITIONS. 

170. The object of Set Twelve is to introduce the 
Six-column Journal, and to give the simplest method of 
keeping books for corporations. 

171. The Books used are the Six-column Journal and 
Ledger as principal books. The Check-Book and Bank¬ 
books are used as auxiliaries. 

172. The Six-column Journal is used to save the 
posting of Cash and Merchandise every day by posting the 
aggregate of their debits and credits once a week. Sundry 
accounts are posted every day, but instead of posting Cash 
and Merchandise daily, these accounts may be posted at 
stated periods, thus effecting great economy in posting. 

Journalizing should be done according to rules already 
given, extending Cash and Merchandise amounts opposite 
their names in their respective columns. By this system 
you can prove your Journal on a balance at the end of 
each day, week or month. 

On the principle of the Six-column Journal, any num¬ 
ber of special columns could be used for any kind of busi¬ 
ness. 

173. A Corporation is an association of individuals 
having the capacity of transacting business as a single 
individual. 

174. The Capital of a corporation is divided into 
shares, usually valued at $100.00 each, and persons own¬ 
ing one or more of such shares are called stockholders. 

175. The Management of corporations and stock com¬ 
panies is confided to a board [of directors elected annually 
by the stockholders, each stockholder having one vote for 
each share of stock owned by him. The president and 
permanent officers of the company are elected by the 
board of directors. 

176. Changing from Partnership to Stock Company. 

To convert a Partnership into a Stock Company, where 
business remains in the same hands, close the partners’ 
accounts into the account of Capital Stock, issuing to 
each of the partners their respective shares of stock. 


massey’s modern book-keeping. 


187 


Or this may be accomplished by means of a journal entry. 
Thus, suppose A, B and C are partners in a business, and 
desire to change the firm into a company having the 
same capital. A has an interest in the firm of $10,000. 
B has an interest of $8,000, and C $6,000. The journal 
entry would be 

A $10,000 

B 8,000 

C 6,000 

To Capital Stock $24,000 

The individual accounts of the partners now balance 
and are ruled up. A will then receive a Certificate of 100 
shares of the stock at $100 each, B 80 shares and C 60 
shares. A Stock Ledger is opened and each shareholder 
is credited with the amount of the stock he holds. 

Were the stock of the above company increased, as for 
instance to $40,000, the difference of*$ 16,000 would be 
charged to a nominal asset, as “Good Will.” 

177. Installment Script is a receipt given|to a person 
when a payment has been made on stock|subscribed 

SET TWELVE. 


MEMORANDA FOR ACTUAL TRANSACTIONS. 

(347) Pay one month’s rent in cash. 

(348) Call at your teacher’s office and subscribe for ten 
shares College Bank stock, and give check for amount. 
See market quotations. 

(349) Write a check payable to your teacher for such an 
amount as you can spare, not exceeding one-fourth the 
face amount, and have the same indorsed to apply on 
your note given to him in transaction 308. This note 
should now be at Bank for collection. 

Be careful to prove your cash balance at the close of 
each day. 

(350) Ship goods to Firm 42 to be sold on your account 
and risk. 

(351) Draw at five days sight on the firm to whom you 



138 


massey’s modern book-keeping. 


made shipment for sale on your account in transaction 350 
for about one-half the value of this shipment,estimated at 
local quotations. Make this draft payable to your Bank, 
and discount it there, at their current rate of discount, for 
the time it has to run, estimating four days before its 
acceptance and allowing three days of grace. Deposit the 
proceeds of this draft. 

(352) Buy five shares of railway stock, allowing present 
quotations and giving your check for the same. 

(353) Order a quantity of Mdse, of Firm No. 43, enclos¬ 
es your certified check for about one-fourth of the esti¬ 
mated amount, to apply on purchase, and directing this 
firm to allow their cash discount and send the Mdse. C: O. 
D. for the balance. 

(354) Order a quantity of Mdse, of Firm No. 44, en¬ 
closing a bank draft for about one-half the amount, esti¬ 
mated at present local quotations, and directing them to 
allow their cash discount on the entire bill and draw on 
you at sight for the balance. 

(355) Buy of your teacher a note at 30 days for $250.00, 
in his favor, signed by H. C. Clay and dated 28 days ago, 
and indorsed by the teacher “ without recourse. ” Allow 
him $200.00 for it, giving him your certified check. 
(Write this note as above described and present it to your 
teacher for signature and indorsement.) Indorse the 
above note, making it payable to Firm No. 44, to whom 
you will send it for credit on your account. 

(356) Ship Firm 45 an invoice of Mdse., and as the 
same was not ordered, write them you will allow them a 
special discount of 10 per cent, if they will accept the 
goods. 

(357) Order a quantity of Mdse, of Firm No. 46, and 
enclose your draft at three days on Firm No. 45 for about 
one-half the amount of your order, estimated at present 
local quotations. Ask Firm No. 46 to charge the balance 
of the invoice to your account. If Firm No. 45 does not 
owe you that much,make the amount of the draft smaller, 
so that the amount drawn shall not exceed the amount of 
his debit on your books. 


massey’s modern book-keeping. 


189 


(358) Buy Mdse, on account. 

(359) Order Mdse, of Firm No. 47. 

(360) Order Mdse, of Firm No. 48. 

(361) Post to Ledger. Take Trial-balance and close 
loss and gain accounts. 

(362) Mail statements to each firm who owe you a bal¬ 
ance on account. 

(363) Have Pass-book balanced. 

(364) You will now admit W. N. Philips as a partner in 
the business, under the firm title of [your name] & Co- 
The present capital shown on your books will be your in¬ 
vestment in the new firm. W. N. Philips invests one-half 
as much as your present worth, thereby holding a one- 
third interest in the business. His investment consists of 
cash for one-third the amount, and three notes for the 
balance, in equal amounts, due in five, ten and fifteen 
days respectively, bearing interest at 6 per cent., and pay¬ 
able to the new firm. 

You will conduct the business for the new firm, for 
which you are to draw a salary of $25 per week, after 
which the net gain or loss will be divided according to the 
amounts invested. [Draw up partnership agreements in 
duplicate, signing them as one partner, and presenting the 
same, with the two notes properly written, to W. N. 
Philips (represented by your teacher), also collecting the 
oash he is to invest.] 

(365) Buy Mdse, on account. 

(366) Sell Mdse, on account. 

(367) Buy Mdse, on account. 

(368) Sell Mdse, and receive in payment demand note. 

(369) Buy Mdse, on account. 

(370) Sell Mdse, on account. 

(371) Buy Mdse, and give in payment note with in¬ 
dorsement, payable in 10 days, with interest. 

(372) Sell Mdse, for note. 

(373) Buy Mdse, and give in payment demand note. 

(374) Order Mdse, of Firm No. 49. 

(375) Order Mdse, of Firm No. 50. 

(376) Sell Mdse, on account. 


140 


massey’s modern book-keeping. 


(377) Ship Firm No. 51 Mdse, on account. 

(378) Draw at sight on Firm No. 51 for the amount of 
their account, making the draft payable to Wholesale 
House, to whom } t ou will send it, requesting them to collect 
the draft and give you credit for the same. 

(379) Make another payment to apply on your note 
given to teacher in transaction 308, paying about one-half 
of the balance yet due. [See that this payment is prop¬ 
erly indorsed.] 

(380) Sell Mdse, on account. 

(381) Watch carefully the maturity of all notes receiv¬ 
able and payable, and call for credit on your Bank-book 
for proceeds of all notes and drafts they collect for you. 

(382) Pay your teacher for telephone rent, $12. 

Note.—Rule up Six-column Journal, post, take Trial-balance 

and close Ledger. You are now to form a Stock Company. 

Special Instruction. Your firm will now sell out the 
entire business to “The (student’s name) Grocery Com¬ 
pany,” which is organized as a joint-stock company. Sell 
out the business and take stock in the new company for 
the value of the present worth as shown by the Balance- 
sheet at end of transaction 382. A certain sum will be 
allowed for the “Good Will” of the business,which amount 
will be decided by your teacher. Your teacher will take 
some stock in the new company. 

Note 1.—It will be necessary to add to the books already used 
a Stock Ledger, which will be used as an auxiliary book. (Use 
back part of Ledger for Stock Ledger.) 

Note 2.—Receive names of shareholders and number of shares 
each one takes from teacher. All stock not subscribed for is held 
as “Treasury Stock.” 

Note 3—Draw check for your bank account, signing old firm 
name, and making it payable to new firm. Deposit this in name 
of new firm. 

(383) As soon as stock is subscribed, make entry iu 
Journal-Day-book, debiting each stockholder for the 
amount of the stock he subscribes for and crediting “Capi¬ 
tal Stock” for authorized capital of joint-stock company; 
also debiting “Treasury Stock” for amount of unsub¬ 
scribed stock, if any. See Paragraph 176. 


massey’s modern book-keeping. 


141 


Note.—In debiting yourself for stock you have subscribed for, 
carry the amount to your private account. 

(384.) You will next change your partner’s account in 
Ledger to private account by making entry in Journal- 
Day-book; also credit him for amount of Good Will. 

(385) Issue yourself Stock Certificate for the number of 
shares you subscribed for. The other stockholders will 
pay for their stock in four equal installments. You will 
now receive cash from stockholders for one-fourth the 
amount each has subscribed as first installment. Make 
the following entry in Cash-Book: Debit Cash and credit 
Stockholder for the amount he has paid in. (Issue Install¬ 
ment Script. See Paragraph 177.) 

(386) Buy a stock of merchandise from Wholesale House, 
amounting to about $3,000. (Select this well, so that 
you will not have unsalable goods on hand. Try to get 
a discount on goods.) 

(387) Sell from the above stock to Wholesale House 
and receive a ten days note for such an amount that when 
discounted at 10 per cent, the proceeds will be $500.00. 

(388) Sell balance of Treasury Stock, if any, at 103, 
receiving cash for part and note for balance. 

(389) Collect second and third installment. 

(390) Collect fourth installment and take up Installment 
Scrips, issuing Certificates of Stock in their places. 

(391) Declare dividend. First close all accounts show¬ 
ing loss and gain, into “Loss and Gain” account; then 
close 90 per cent, of “Loss and Gain” into “Reserved Prof¬ 
its” and the balance into “Surplus Fund.” 

Note 1.—Consult Manager as to amount of dividend. 

Note 2.—Make entry in Journal-Day-book, debiting “Keserved 
Profits” for amount of dividend, and crediting “Dividend.” 

Note 3.—“Surplus Fund” is a certain per cent, of the earnings 
set aside for emergencies. “Reserved Profits” is the name ap¬ 
plied to earnings that have not yet been divided among stock¬ 
holders. 

(392) Have stockholders call at once, and when you pay 
them their dividends have them receipt same in Dividend 
Book. 


142 


massey’s modern book-keeping. 


Note 1.—When you pay a dividend, debit “Dividend” and 
credit what you pay. 

Note 2.—Take Trial-balance. 

(393) The “(Student) Grocery Co.” now decide to dis¬ 
continue business. Sell all merchandise on hand to Whole¬ 
sale House. 

(394) Pay all accounts that are due. 

(395) Collect cash for all accounts that are due. 

(396) Pay all notes that are due. Discount those not 
due. 

(396) Collect all Bills Receivable that are due. Discount 
those that are not due. 

(397) Buy at Bank drafts which remit to all foreign 
firms that you owe. 

(393) Convert everything into cash. 

(399) Post, make Balance-sheet and close Ledger. 

(400) If there is anything omitted in the above that is 
necessary for you to close out business, it will simply be 
necessary for you to pay off all liabilities and reduce all 
resources to cash, deposit cash in Bank and present cer¬ 
tified check for your Bank balance (when your books are 
handed in) to your teacher. 


massey’s modern book-keeping. 


143 


EXAMINATION RECORD, SET TWELVE. 


Date. 


Bill-book. 


Journal-Day-book. 


Ledger. 


Six-column Journal... 

.Questions 

Stock-book. 


Final Settlement. 


Re-work. 



Copy 

















144 


massey’s modern book-keeping. 


INSTRUCTIONS FOR OFFICES. 

The student in charge of any office will be held respon¬ 
sible for the management of that office, condition of books, 
furniture, etc., and must see that everything is kept neat 
and tidy, and see that the books are put away and all 
trash taken off the desk when he leaves the office. 

All books in the offices must be in perfect order, balance 
taken, Ledger closed, etc., before business hours on Mon¬ 
day of each week. Failure to do this will keep the stu¬ 
dent out of an office for the week, and his grade will be 
lowered. 

Any one detected in forcing a balance will be dismissed 
from the department. 

Have Bank Pass-book balanced at end of each week. 

WHOLESALE HOUSE. 

Upon entering the office see that the Ledger is on balance 
Test the cash by counting what is on hand and compar¬ 
ing it with balance as shown by Cash-book. (If Bank ac¬ 
count is kept on check-stubs only, the cash as shown by 
the Cash-book will be equal to the sum of the cash in the 
drawer plus balance in Bank, as shown by check-stubs.) 
Find the amount of notes on hand, and see if this amount 
agrees with the difference between the debit and credit 
sides of the Bills Receivable Account; also, if it agrees 
with the sum of those not marked paid in Bills Receivable 
Book. Find the amount of notes not marked paid in Bills 
Payable Book and see if it agrees with balance of Bills 
Payable Account in Ledger. 

Make a deposit every day. 

Collect all notes and drafts when they become due and 
settle as many personal accounts at the end of each week 
as possible. 

Discount at Bank all notes on hand and not due on Fri¬ 
day of each week. 

Be sure to index the Ledger. 

A Trial-balance must be made out at the end of each 
day’s work and presented to the teacher before the Book¬ 
keeper will be allowed to leave the office. 

Make Balance-sheet at end of each week and present all 
books to teacher for examination. 

Upon leaving an office, see that everything agrees, ap¬ 
plying the same tests you did upon entering. 


MASSEY'S MODERN BOOK-KEEPING. 


145 


' STATEMENT. 

to be filled out by student at end of each week’s work in 
Wholesale House, and presented to teacher: 

1. Dr. side of Cash. 

2. Cr. side of Cash. 

3. Difference. 

4. Actual amount of cash on hand. 

5. Dr. side of Bills Receivable. 

6. Cr. side of Bills Receivable. 

7. Difference.. 

8. Amount of Bills Receivable not marked paid in Bill- 

book. 

9. Am’t of other persons’ notes in your possession. 

10. Cr. side of Bills Payable. 

11. Dr. side of Bills Payable. 

12. Difference. 

13. Amount of Bills Payable not marked paid in Bill- 

book. 

14. Dr. side of Bank Account. 

15. Cr. side of Bank Account. . 

16. Difference. 

17. Balance in Bank as shown by Check-stubs. 

18. Bank bal., as shown by Bank Pass-book. 

19. Difference between Bank balance as shown in Pass¬ 
book, and your bal., as shown by Check-book .. 

20. List of checks that have not been paid at Bank ... .. 

Note.—The amount of checks outstanding (those not yet paid 

by Bank) should equal difference between your balance and Bank 
balance. 

10 






















146 


massey’s modern book-keeping. 


BANKS. 

» 

Upon entering the Bank count cash and see if it agrees 
with cash as shown by the Cash-book. Add notes that 
have been discounted and see if they agree with balance 
of Bills Discounted account in Ledger; also see if those 
not marked paid in Discount Register will amount to the 
same thing. 

See if the amount of the Certificates of Deposit not 
marked paid in the Certificate of Deposit Book will agree 
with balance of same account in Ledger. 

Compare the amount of net deposits as shown by last 
‘‘Balance” column with the balance of “Individual Depos¬ 
its” in the Ledger. 

If all these do not agree, report to teacher in writing at 
once. 

When you leave the office apply the same tests. 

Office men must be quiet and orderly, and must be 
courteous to customers. 

The day’s work must be finished before the student will 
be excused from the room. 

The student in the Bank must collect all Bank Pass-books 
on Friday of each week, and balance them up and return 
to each customer all checks paid for him during that week. 

As the other students are dependent to a great extent 
on the offices, it will be necessary for the office man to do 
his work even if he has to work late at night. If any 
student in any office, through negligence, fails to keep up 
with the work he will be replaced by another student and 
lose his right to enter any other office. 


massey’s modern book-keeping. 147 

STATEMENTS. 

Statement to be filled out by student at end of each 

week’s work in Bank and presented to teacher. 

1. Dr. side of Cash-book. 

2. Cr. side of Cash-book. 

3. Difference. 

4. Actual amount of cash in drawer. 

5. Dr. side of Bills Discounted Account. 

6. Cr. Side of Bills Discounted Account. 

7. Difference. 

8. Amount of discounted notes and drafts actually on 

hand. 

9. Amount of bills discounted not marked paid in Dis¬ 
count Register. 

10. Balance of Individual Deposits as shown by account 

in Ledger. 

11. Balance of Individual Deposits (net deposits), as 

shown by Deposit Ledger. 

12. Amount of Certificates of Deposit not marked paid 

in Certificate of Deposit Register. 

13. Amount of notes, drafts, etc., not marked paid in 

Collection Register.. 

14. Amount of collections, (notes, drafts, etc.) on hand 

for collection and not yet collected. (This includes 
those that have been sent to other banks for collec¬ 
tion.).. 
















148 


massey’s modern book-keeping. 


PRACTICE WORK IN BANKING. 


This work is given so that 
for the regular work of 
follows: 

Ledger, 

Cash-book, 

Deposit Ledger, 
Discount Register, 

Draft Register, 

Note.—It will be necessary 
like model in “ Model Book” on 


the student may fit himself 
Banking. The books are as 

Certificate of Deposit Register, 
Collection Register, 
Trial-balance Book, 
Remittance Register. 

for the student to rule the books 
teacher’s desk. 


JANUARY 1, 1897. 

The student will now organize a corporation under the 
name of “The (student’s name) Banking Co.,” with a 
capital stock of $100,000.00. The following persons have 
become stockholders, and have subscribed the amounts 
opposite their names: 

(Student’s Name).500 Shares.$50,000.00 

R. W. Massey.100 Shares. 10,000.00 

(Your Teacher’s Name).100 Shares. 10,000.00 

W. A. Randall.200 Shares. 20,000.00 

R. S. Henderson.100 Shares. 10,000.00 

Explanation : The amount of stock owned by the 
different stockholders is usually kept in a book called the 
Stock Ledger. As we do not keep this book, a record may 
be put in the back part of the Cash-book. 

JANUARY 2, 1897. 

You may collect the amount subscribed by each stock¬ 
holder in cash. 


Note.—Turn to the debit side of your Cash-book and credit 
“Capital Stock” for the amount paid in, using for explanation 
“ Amount paid in by Stockholders.” 

Explanation: The above opening entry having been 
made, you are ready to commence business. There is a 
great deal of preliminary work in the organization of a 
Bank that is not given here, it not being necessary, as the 
object of this work is to give those transactions which 
make up the routine of a banker’s daily work. 












massey’s modern book-keeping. 149 

.JANUARY 3, 1897. 

(a) Paid for safe.$1500.00 

(b) Paid for office desk and fixtures. 2100.0() 

( c ) Paid one month’s rent in cash. 100.00 

( d ) PaidJ. P. Bell & Co., for office books fur¬ 
nished us on the first, and for printing blanks 

for office use.. ... 125.00 


(e) Received the following deposits, as shown by deposit 
tickets on file: 

H. M. Clark.$5000.00. 

D. E. Fuller. 2500.00. 

G. Y. Henry. 550.00. 

J. M. Latham. 998.25. 

W. G. Massey. 215.50. 

G. Salter. 425,00. 

Millerlnvestm’tCo. 1250.25. 

W. C. Stephens. 450.00. 

Note.—Enter the names of the depositors in the Deposit 
Ledger and extend the amount of their deposits into the column 
headed ‘"Deposits” or “Credits.” 

(/) As shown by the check file, the following checks 
were paid depositors: J. M Latham, $28.00, $225.00; W. 
J. Wise, $26.00; J. F. Hart, $20.00, $75.50, $30.00; Miller 
Investment Co., $24.00, $128.10, $43.00, $82.20, $10.20; 

H. M. Clark, $480.00, $40.00; R. M. Dozier, $900.00; D. 

E. Fuller, $235.00; G. Y. Henry, $16.08, $11.40. 

Note.—Enter these in Deposit Ledger, in Column headed 
“Debit Items” or “Checks in Detail.” 

(g) Wishing to use the Massey Banking Co., Jackson¬ 
ville Fla., and the First College Bank, Montgomery, Ala., 
as our correspondents, we remit Ten Thousand Dollars to 
Jacksonville, and Twelve Thousand to Montgomery, by 
Southern Express Co. ,to be placed to our credit. Pay express 
charges at the rate of 50 cts. per thousand, $11.00. 

Note.—Enter the amount sent to Jacksonville in Remittance 
Register under heading “Drafts, etc., remitted to Massey Banking 
Co.,” Jacksonville, Fla., as follows : In column headed “Date Sent” 
enter date; in column headed “No.”enter figure “1”; in column 
headed “Drawer” enter word “Cash”; in column headed “Drawee” 
enter Southern Express Co.; and in the amount column enter the 


R. M. Dozier.$7500.00. 

J. F. Tillman. 1800.00 

S. S. Hoover. 50.00. 

W. N. Philips. 280.00. 

J. F. Hart. 900.00. 

W. J. Wise. 85.00. 

C. F. Beutel. 900.00. 




















150 


massey’s modern book-keeping. 


amount. On the page headed “Drafts, etc., Remitted to First Col¬ 
lege Bank, Montgomery, Ala.,” enter the amount remitted to the 
bank in same manner. Carry the amount paid for express charges 
direct to the Cash-book, debiting “Expense.” 

( h) The following foreign draft and check were re¬ 
ceived during the day, and were remitted to the Massey 
Banking Co., Jacksonville, Fla., to be placed to our credit: 
Draft No. 391, drawn by the German National Bank of 
New Orleans on the Commercial National Bank of N. Y. 
for $850.38, and indorsed by H. M. Clark; an individual 
check for $25.00, drawn by I. M. Groves on the First Na¬ 
tional Bank of Augusta, and indorsed by S. S. Hoover. 

Note.—Enter the draft in Remittance Register on Jacksonville 
page, as follows: Date in date column; No. 2 in number column; 
“German National Bank,” the name of the bank that drew the 
draft, in column headed “Drawer”; name of the city “New Or¬ 
leans” in column headed “City” ; in column headed “Drawee” en¬ 
ter the name of the bank “First National Bank, New York,” upon 
which the draft is drawn; in column headed “Last Indorser” the 
name of the last indorser, H. M. Clark; and in the amount column 
enter the amount. In same manner enter the check drawn by 
Groves, numbering the papers remitted consecutively. 

( i) Remitted the following foreign draft, received 
during the day, to the First College Bank, Montgomery, 
Ala.; Draft No. 85, drawn by the Merchants Bank of 
Americus, Ga., on the Second National Bank of Atlanta, 
Ga., for $150.00. 

Note.—Enter on the Montgomery page in Remittance Register. 

( j ) Certified a check for W. G. Massey for $180.00. 

Note.—When a check is certified by the bank, the Teller 
stamps or writes the word “Certified” and the date across the face of 
the draft and signs his name as Teller. 

Note 2.—Enterthis check in W. G. Massey’s Bank Pass-Book 
on credit side. Then debit W. G. Massey in column headed 
“Debit Items” in Depositors’ Ledger, and enter same amount in 
column headed “Credits” opposite the name “Certified Check,” 
which you enter in column for Depositors’ names. 

(k) Issued the following certificates of deposit, which 
are to draw 4% interest, if left 60 days: One to M. P- 
Skipper, favor himself, for which he deposited cash, $400.00; 


massey’s modern book-keeping. 


151 


one to A. H. Stevens, favor Thos. Wight, for $200.00, for 
which he deposited cash. 

Note.—Enter these in certificate of deposit book as follows: 
Date in column headed “Date Issued”; the number in column 
headed “No”; name of the person to whom issued in column 
headed “To Whom Issued”; and the name of the person to whom 
it is made payable in column headed “To Whom Payable”; and 
amount of certificate in “Amount Column.” 

( l ) The following drafts were received for collection : One 
drawn on H. M. Clark, City, by L. H. Jackson, Charlotte, 
N. C., for $80.00; a one day sight draft on R. Martin, 
Griffin, Ga., for $100.00, drawn by A. H. Stevens, City. 

Note.—Enter these in Collection Register as follows: In 
column headed “When Left” write the name of the month and 
date received, and write the year at the top of the column; in 
column headed “No.” write figure “1” for the first, figure “2” for 
the second, etc.; in column headed “Maker or Drawee,” write 
the name of the person on whom the drafts are drawn; in column 
headed “ Drawer or Indorser ” write the name of the person who 
drew the draft; in column headed “Where Payable” write the 
name of the place where the paper is to be paid; if the paper is to 
be sent to another bank, enter in the column headed “To Whom 
Sent,” the name of the bank to which you send it; in the column 
headed “Date,” write the date of the paper; in the column headed 
“Time,” write the word “Sight” if the paper is payable at sight, 
and the number of days or months for which the paper is drawn, 
if it be a time draft or note; in the column headed “When Due” 
write the date of the the maturity of the paper; in the column 
headed “For Whom Collected” write the name of the person, firm 
or bank that the paper is collected for; in the column headed 
‘‘Their Number” write the number placed on the paper by the 
drawer, or the person for whom collected; then in the column 
headed “Face,” write the sum named in the face of the paper. 

(m) We collected L. H. Jackson’s draft on H. M. Clark 
for $80.00, and charged 25 cents collection, and remitted 
proceeds to him in cash. 

Note.—Go to the Cash-book, and credit “ Collection and Ex¬ 
change” for amount of collection on the debit side of the Cash¬ 
book. 

( n ) Sent A. H. Stevens’draft on R. Martin, Griffin, Ga., 
!}o the First National Bank of Griffin, for collection. 


152 massey’s modern book-keeping. 

Note.—Write letter enclosing draft for collection. You will 
find a form in the Model Book on teacher’desk. 

(o) The following notes were discounted: A thirty 
day note, dated January 1, 1897, for Wm. Opp, drawn by 
S. S. Hoover, for $500.00, in favor of A. T. May, and 
transferred by Mr. May to Mr. Opp. Rate of discount 7% 
on all notes discounted; a one day note for R. E. Lee, 
dated January 1, 1897, and drawn by I. M. Groves for 
$240.00, in favor of B. Whorley and indorsed by Mr. 
Whorley. 

Note.—Enter these notes in Discount Register as follows : In 
column headed “ Date Discounted,” enter the date upon which 
the paper is discounted; in the column headed “ No.” enter the 
numbers of papers discounted consecutively; in the column 
headed “ Payer,” enter the name of the maker of the note, or, if 
it be a draft, the name of the drawee; in column headed “Where 
Payable,” enter the name of the bank or place at which the paper 
is made payable; in the column headed “Date” enter the date upon 
which the paper is drawn; in the column headed “ Time,” enter the 
time for which the note is drawn; in the column headed “ When 
Due,” enter the date of maturity of the note; in the column headed 
“ Discount Period,” enter the number of days or months the paper 
has yet to run, that is, from the date it is discounted to the last 
day of grace, or the maturity of the note; in the column headed 
“Face,” enter the face of the note or draft; in the column headed 
“ Accrued Interest,” enter the amount of interest that has 
already[accrued when the note is discounted, if it is an interest- 
bearing note; in the column headed “Discount,” enter the 
amount of the discount; in the column headed “ Proceeds,” enter 
the proceeds of the paper discounted; in the column headed “For 
Whom Discounted,” enter the name of the person for whom dis¬ 
counted; in the column headed “ Check,” enter a check-mark (^/) 
as soon as the note or draft is paid and entered to indicate that 
the record is complete; in the column headed “Remarks,” enter 
the word “ Paid” and the date upon which the paper is paid. 

(p) The following drafts were issued on the First College 
Bank, Montgomery, Ala.: To O. H. Longwell, favor G. H 
Colbert, $200.00, exchange 50 cents; to J. A. Ross, favor 
himself, for $100.00, exchange 25 cents. 

Note.—Enter in Draft Register under heading “Drafts Drawn 
on First College Bank, Montgomery, Ala.”; enter in date column 
the date; enter in number* column the number of the draft; in 
column headed “ To Whom Sold,” enter the name of the person to 


massey’s modern book-keeping. 


153 


whom the draft was sold; in the column headed “ To Whom Pay¬ 
able,” enter the r>ame of the person to whom the draft is made 
payable; in column headed “ Face,” enter the amount for which 
the draft is drawn; in column headed “ Total Face,” enter the 
amount of the draft and of the exchange added together; in 
column headed “Exchange,” enter the amount of exchange; in 
column headed “ Total Exchange,” enter the amount of the 
exchange received during the day on drafts we draw on our 
correspondent. 

GUIDE FOR WORKING UP THE FIRST DAY’S WORK. 

First take the Depositors’ Ledger. The deposits made 
during the day have been entered in the column headed 
“Credits” and the checks paid have been entered in the 
column headed “Debit Items” or “Checks in Detail.” The 
next step is to add all of the checks paid for any one firm 
and enter the amount opposite the firm’s name in the col¬ 
umn headed “Total Debits.” Then commence with the 
first name in the Depositors’ Ledger, and subtract the 
amount of checks paid for that firm from the deposit 
made by same firm and this will give the firm’s balance 
in the Bank, which extend into the column headed “Bal¬ 
ances.” Continue in like manner with all the accounts in 
this book. 

HOW TO PROVE THE DEPOSIT LEDGER. 

The first day’s work in the Deposit Ledger is proven by 
adding the deposits for that day and subtracting the sum 
of the checks paid for that day from the sum of the de^ 
posits, and if this gives the sum of the balances (less any 
overdrafts, if there be any) the work is correct. To prove 
the work of the following day, add the footings of the cred¬ 
it column to the net deposits of the first day, and from the 
result subtract the footing of the debit column. This 
gives the amount of deposits in the Bank at the end of 
each day’s work. The result so obtained should agree 
with the sum of the balances, minus the sum of the over¬ 
drafts, as shown by the books on the second day. Each 


154 


massey’s modern book-keeping. 


succeeding day’s work is compared in the same manner 
with that of the day immediately preceding it. 

DIRECTIONS FOR RULING THE DIFFERENT BOOKS. 

Deposit Ledger. —Rule single red line on the blue line 
before the last at the bottom of the page and double rule 
at the last blue line on the page. Between the single and 
double ruling, under the debit column, place the amount 
of checks paid for that day; under the credit column, 
write the amount of deposits for that day; and under the 
balance column place the net deposits, which is the sum 
of the balances, minus the overdrafts. If the deposits oc¬ 
cupy more than one page, use the single line only on the 
first page, as the footings have to be carried forward. 

Discount Register. —Rule single line across the amount 
column directly under the last note discounted. Foot the 
different amount columns; then rule double lines under 
their footings. 

Rule Draft Register, Remittance Register, and Certifi¬ 
cate of Deposit Register in the same manner as the Dis¬ 
count Register. The Collection Register does not need to 
be ruled. • 

RULES FOR POSTING TO CASH-BOOK FROM OTHER 
BOOKS. 

From Deposit Ledger.— Post footings of debit items 
to credit side of Cash-book, debiting “Individual Depos¬ 
its” and using the words “Deposit Ledger” for explana¬ 
tion. Post the footings of the credit items to the debit 
side of the Cash-book, crediting “Individual Deposits” 
and using for explanation “Deposit Ledger.” 

From Discount Register.— Post the amount of notes 
discounted to the credit of the Cash-book, debiting “Bills 
Discounted,” and using for explanation “Discount Reg¬ 
ister.” Post the amount of the discount allowed the 
bank on notes discounted to the debit side of the Cash¬ 
book, crediting “Interest and Discount,” and using for 


massey’s modern book-keeping. 


155 


explanation the words “Discount Register.” If there 
is interest due on any notes, when discounted, post 
it to the credit side of the Cash-book, debiting “Inter¬ 
est and Discount,” and using the explanation, “Discount 
Register.” If the proceeds of any note discounted is to 
be credited, carry the amount to be credited to the credit 
of the person’s account in the Deposit Ledger, and enter 
same in his Bank Pass-book. 

From Remittance Register.— Post footings to the 
credit side of the Cash-book, debiting the bank to whom 
the remittance was made. 

From Certificate of Deposit Register.— Post footings 
of Certificate of Deposit Register to the debit side of Cash¬ 
book, crediting Certificate of Deposit and using for expla¬ 
nation the words “Deposit Register.” 

From Collection Register.— When note left for col¬ 
lection has been collected, go to the debit side of the 
Cash-book and credit “Collection and Exchange” for the 
amount you charge for collection, and use for explanation 

the words “Collection No-.” If the proceeds are to be 

placed to the dealer’s credit, carry the amount of the pro¬ 
ceeds to his credit in the Deposit Ledger. 

From the Draft Register.— Post the footings of the 
amounts to be credited to the debit side of the Cash-book, 
crediting the Bank upon which the draft is drawn and us¬ 
ing for explanation “Draft Register.” Post the footings of 
the “Exchange” column to the debit side of the Cash-book, 
crediting “Collection and Exchange,” and using for expla¬ 
nation “Draft Register.” 

After all work has been carried to the Cash-book, rule 
it up like any ordinary Cash-book and post from it to the 
Ledger, the same as you would if you were posting the 
Cash-book in a Wholesale or Retail House. You close all 
accounts showing Profit and Loss at the close of each day’s 
work into the Profit and Loss account. You then carry 
10 % of the gains to an account which you call “Surplus 
Fund,” and 90 % to an account called “Reserved Profits.” 
After having done this, take a Trial-balance, which enter 
in Trial-balance Book. 


156 


massey’s modern book-keeping. 


JANUARY 4, 1897. 

(a) Received the following deposits, as shown by de¬ 
posit tickets on file: 

H. M. Clark.$1002.40. ’ J. F. Tillman.$300.00. 

G. Y. Henry. 825.45. S. S. Hoover. 229.00. 

G. Salter. 346.00. W. J. Wise. 920.00. 

Miller Inv’t Co... 249.00. W. C. Stephens ... 228.00. 

( b ) As shown by checks on file, the following amounts 
were paid depositors: D. E. Fuller, $400.00, $75.00, 
$840.00; G. Y. Henry, $84.96, $78.05; J. M. Latham, 
$728.40, $86.94; C. F. Beutel, $225.00, $80.90; W. C. 
Stephens, $230.00, $11.49, $7.29; W. N. Philips, $98.25, 
$49.76. 

Note.—The student will notice that J. M. Latham has over¬ 
drawn his account. In extending his balance to the column 
headed “Balances,” enter his overdraft in red ink. 

(c) The following remittance was made to the Massey 
Banking Co., Jacksonville, Fla.: A certified check on the 
First National Bank of Jacksonville and signed by A. A. 
Marchand, for $234.50, in favor of R. W. Massey and 
indorsed by him: a personal check drawn on the Farm¬ 
ers’ State Bank of St. Augustine, Fla., by Hunt Norvell, 
for $81.45, in favor of J. T. Naff; a sight draft drawn by 
J. R. Ritter on M. P. Skipper in favor of H. H. Garner 
for $100.00, and received by us as deposit during the day. 

Note.—Enter these in Remittance Register on page headed 
“Drafts, etc., Remitted to Massey Banking Co., Jacksonville, Fla.” 

(d) Certified the following checks: One for C. F. 
Beutel for $450.00; one for J. F. Tillman for $1200.00. 

Note.—Enter these in Deposit Ledger, debiting the drawers of 
the checks and crediting “Certified Checks.” 

(e) We have this day paid a check which we certified 
on the 3d instant for W. G. Massey for $180.00. 

Note.—Enter this in the column headed “Debit Items” or 
“Checks in Detail” in the Deposit Ledger, opposite the name 
“Certified Checks.” This debits Certified Checks. 

if) We have this day issued the following Certificates 
of Deposit: One to Walter M. Ross, favor himself, for 
which he deposited cash, $280.00, and one to C. B. Gib- 








massey’s modern book-keeping. 


157 


son, favor Homer'Wright, for $235.00, for which he de¬ 
posited cash. 

Note.—Enter these in Certificate of Deposit Register. 

( g) Paid Certificate of Deposit No. 1, issued M. P. Skip¬ 
per on the 3d instant for $400.00. 

Note.—Go to the Credit side of the Cash-book and debit 
“Certificates of Deposit,” using for explanation, “Paid Certificate 
No. 1.” Also mark it paid in the Certificate of Deposit Register. 

(K) Received notice from First National Bank, Griffin, 
Ga., that A. H. Stevens’ draft for $100.00 on Robert 
Martin had been paid. The Bank charged us 25 cts. for 
collection, and remitted us exchange on Montgomery, 
Ala. for the proceeds. We made an additional charge of 25 
cts. for collection, and paid A. H. Stevens the proceeds' 
$99.50, in cash. 

Note.—Credit “Collection and Exchange” on debit side of 
Cash-book for the 25 cts. collection charges received by us. 

(/) The First College Bank of Augusta, Ga., wishing 
to use our Bank as a bank of deposit, have sent us by 
Southern Express Co. three thousand dollars ($3000.00), 
which was delivered to us to-day to be placed to their 
credit. 

Note.—Give First College Bank, Augusta, Ga., credit in Cash¬ 
book for cash received. 

Received the following letter from them containing 
checks, drafts, etc., as therein described, to be placed to 
their credit: 

Augusta, Ga., January 2, 1897. 
(Student’s name) Banking Co., 

Columbus, Ga . 

Gentlemen: Enclosed please find the following papers 


for credit: 



Our No. 

Payer. 

Payee. 

Amount. 

2 

Graham Mer. Co., 

R. J. Williams, 

$178.75 

3 

J. W. Dye, 

W. J. Wise, 

13S.50 

4 

Kahn Mer. Co., 

T. H. Phipps, 

33.08 

5 

Barton Mer. Co., 

R. M. Dozier, 

243.75 

6 

Graham Mer. Co., 

F. E. Lummus, 

578.50 

7 

J. H. Howell, 

L.H. Tonge, 

235.00 

8 

A. J. Lederer, 

E. T. LeBaron, 

200.00 

9 

J. M. Latham, 

J. J. Michler, 

100.00 

1702.58 



158 


massey’s modern book-keeping. 


Please acknowledge receipt of the same, and oblige, 

Very truly yours, 

First College Bank, Augusta, Ga. 

J. L. Martin, Cashier. 

Note.—Credit the First College Bank of Augusta, G-a., in the 
Cash-book, and use for explanation “ Their letter of January 2, 
1897.” 

(j) The following notes were discounted and proceeds 
credited: A sixty day note for W. A. Gulledge drawn by 
E. E. Johnson, for $800.00, favor W. A. Gulledge, and 
indorsed by W. A. Ross, as security; a ten day note for 
J. R. Buford, drawn by W. T. Mayo in favor of C. E. Du- 
•Pont, for $240.00, and indorsed by him with full indorse¬ 
ment to Mr. Mayo. 

Note.—Enter these notes in Discount Register and carry th e 
proceeds to the dealer’s credit in Deposit Ledger. 

( k ) I. M. Groves has this day paid his note which we 
discounted on the 8d inst., in cash. 

Note.—Enter on debit side of Cash-book, crediting “Bills Dis¬ 
counted,” and using for explanation “ Bills Disc. No. 2,” the 
number of the note in the Discount Register. 

The following drafts were issued on Massey Banking 
Co., Jacksonville, Fla.: One to E. L. Greene, favor him¬ 
self, for $300.00, exchange 75 cents; one to Miss Susie 
Bennett, favor Miss Kate McArdle for $100.00, exchange 
25 cents. 

Note.—Enter these on page for Massey Banking Co,, in Draft 
Register. 

GUIDE FOR WORKING UP THE SECOND DAY’S WORK. 

First we work up and prove the Deposit Ledger. The 
deposits made during the day have been entered in the 
column headed “Credits,” and the checks paid have been 
entered in column headed “Debit Items” or “Checks in 
Detail.” The next step is to add all of the checks paid for 
any one firm and,[enter the amount opposite the firm’s 
name in the column headed “Total Debits.” Then com- 


massey’s modern book-keeping. 


159 


mence with the firsts name in the Depositors’Ledger and 
add the amount of the deposits of that day by that firm 
to the balance of the day before and subtract the amount 
of checks paid for that firm from this result and this will 
give the firm’s balance in the Bank, which extend into the 
column headed “ Balances.” Continue in like manner 
with all of the accounts in this book. If any one should 
overdraw his account in the Bank, enter his overdraft in 
red ink in column headed “Balances.” 

In carrying out the balances for any day, if any balance 
for the day before is a red ink balance, to such red ink 
balance add the debit and subtract the credit. 

Rule up all books and carry footings to Cash-book as 
directed in first day’s work. Then post to Ledger, close 
accounts showing a loss or a gain into “Profit and Loss” 
account; then close “Profit and Loss” account into the 
“Surplus Fund” and “Reserved Profits” accounts, as di¬ 
rected at end of first day’s work and take a Trial-balance. 

JANUARY 5,1897. 


(a) Received the following deposits, as shown by de¬ 


posit tickets on file; 


G. Salter.$125.00 

G. Y. Henry. 725.50 

Miller Inv’t Co. 708.80 

W.J. Wise. 75.50 


J. M. Latham.$ 50.00 

W. G. Massey. 800.00 

C. F. Beutel. 208 80 

W. N. Philips. 400.00 


Note. —Credit depositors in Depositors’ Ledger. 


( b) The following checks were paid during the day:— 
H. M. Clark, $78.00, $120.00, $140.00; G. Salter, $ 0.00, 
$68.00; R. M. Dozier, $61.25, $18.48; J. F. Tillman, 
$250.45, $86.75; J. M. Latham, $28.75, $16.25, $5.20; 
J. F. Hart, $70.00, $29.35, $48.70; D. E. Fuller, $28.90. 


Note.—Debit depositors in Deposit Ledger. 


(c) The following checks were certified: One for H. 
M. Clark for $1000.00, and one forG. Y. Henry, for $25.00. 

Note.—Enter these in Depositor’s Ledger, debiting the draw¬ 
ers of the checks and crediting “Certified Checks.” 

(d) We have this day paid the $450.00 check we cer¬ 
tified for C. F. Beutel on the 4th inst. 










160 


MASSEY S MODERN BOOK-KEEPING. 


Note.—Debit “Certified Checks” in the Deposit Ledger. 

(e) We have this day discounted two notes for W. N. 
Philips, and placed the proceeds to his credit; one signed 
by Armel Marchand for $120.00, payable in 15 days after 
date, and dated Jan. 2, 1897, and one signed by C. P. 
Zaner for $240.00, payable twelve days after date, and 
dated Dec. 21, 1896. 

Note.—Enter the proceeds of these notes to W. N. Philips’ 
credit in the Deposit Ledger, that is, enter them opposite his name 
in column headed “Credits.” 

(/) The following papers were left for collection : A 
sight draft for $80.00 on the Graham Mer. Co., Jackson¬ 
ville, Fla., drawn by C. C. Clark, and to be collected for 
him, and a sight draft for $65.30, drawn on the Reid Grocery 
Co., Montgomery, Ala., by J. L. Stephens, and leftby him 
for collection. 

Note.—Enter in Collection Register. 

(#) We have forwarded C. C. Clark’s draft on the Gra¬ 
ham Mer. Co. to the Massey Banking Co., Jacksonville^ 
Fla., with instructions to collect and place proceeds to our 
credit, and have sent J. L. Stephens’ draft on the Reid 
Grocery Co. to First College Bank, Montgomery, Ala., 
and requested them to place the proceeds to our credit 
when collected. 

Note.—Write letters sending these drafts for collection and 
keep a copy of each one. 

(h) We have this day issued the following Certificates 
of Deposit: One to J. R. Dooner, in favor himself, for 
$1,200; one to W. M. Wagner, favor J. J. Hendrick 
for $235.00. 

(i) Issued the following drafts on the Fifst College 
Bank, Montgomery, Ala.: One to Miss Marion Tillman, 
favor the American Book Co., for $12.50, exchange 15 cts.; 
one to W. C. Stephens, favor himself, for $200.00, ex¬ 
change 50 cts. Received his check on our Bank for 
amount of draft and exchange. 

Note.—Enter drafts in Draft Register and enter W. C. Steph¬ 
en’s check in Deposit Ledger in column headed “Debit Items.” 


161 


massey’s modern book-keeping. 


(j) W ork up Deposit Ledger as instructed in second 
day s work. Rule up all books and post to Cash-book as 
directed in “Rules for Posting to Cash-book from Other 
Books. Then post from Cash-book to Ledger, close ac¬ 
counts showing losses and gains into “Profit and Loss” 
account, close “Profit and Loss” into “Surplus Fund” 
and “Reserved Profits” accounts and take a Trial-balance. 

JANUAKY 6, 1897. 

(a) The following deposits were received to-day 
S. S. Hoover.$ 100.10. W. C. Stephens.$‘99.25. 


J. F. Hart. 250.00. 

J. M. Latham.... 300 00. 

W. J. Wise. 128.35. 

R. M. Dozier. 1,200.00. 


W. G. Massey. 128.43. 

H. M. Clark. 924.00. 

c - W- Dill. 850.00. 


dep^t1ng Enter in DeP ° Sit0rS ’ Led « er ’ credifci "S the persons 

(b) The following checks were paid to-day • S S Hoo 

ver, $10.25, $19.20; J. M. Latham, $24.00; W. C. Stephens 
$54.30, $1.40; H. M. Clark, $80.00, $75.00; C. W. Dill* 
$230.45, $10.75; W. G. Massey, $30.00, $14.25. 

Note.—Enter in Depositors’ Ledger, debiting the depositors. 

(c) Certified a check for $20.00 for C. W. Dill. 

Note.—Enter in Depositors’ Ledger, debiting C. W Dill and 
crediting “Certified Checks.” 

(d) Paid check certified for G. Y. Henry on 5th instant 
Amount of check $25,00. 

Note. Charge “Certified Checks” in Depositors’ Ledger for 
amount of check. 


0) The notes discounted during day are as follows • 
One for Alexis Marchand, drawn by Wm. Layne, for 
$200.00, payable ten days after date, and dated January 5th, 
the proceeds of which we paid in cash; one for C f’ 
Beutel, signed by himself, for $240.00, payable thirty 
days after date, January 6, 1897, the proceeds of which we 
place to his credit. Rate of discount in each case was 7%. 

Note. Enter in Discount Register and carry proceeds of note 
discounted for C. F. Beutel to his credit in Depositors’ Ledger. 

(/) Received notice from the Massey Banking Co., 










162 


MASSEY'S MODERN BOOK-KEEPING. 


Jacksonville, Fla., that C. C. Clark’s draft for $80.00 on 
Graham Mer. Co. had been paid and proceeds placed 
to our credit. Being our correspondent, they make 
no charge for collecting same. We charge C. C. Clark 25 
cts. for collecting same and pay him the proceeds in cash. 

Note.—Charge Massey Banking Co., Jacksonville, Fla., tor 
amount of draft, $80.00, in Cash-book on credit side, and credit 
“Collection and Exchange” for amount we charged for collecting 
same on the debit side of Cash-book. 

(g) Issued a Certificate of Deposit to J. M. Latham for 
$200.00, receiving cash for same. 

Uote.—Enter in Certificate of Deposit Book. 

(h) Have this day paid the following drafts drawn on 
us by the First College Bank. Augusta, Ga.: No. 2 for 
$75.00, No. 4, $90.00; No. 5, $100.00. 

Note.—Charge these to bank drawing them and using for ex¬ 
planation, “Paid their draft No.-drawn on us.” 

(i) Remitted the following foreign check received 
during the day, to Massey Banking Co., for credit: A 
personal check drawn by C. A. Miller, for $200.00, on First 
National Bank, Bowling Green, Fla., in favor of E. L. 
Greene, and indorsed by him. 

Note.—Enter this in Remittance Register on page headed 
“Drafts, etc. remitted to Massey Banking Co., Jacksonville, Fla.” 

0) Work up Deposit Ledger. Rule up all books and 
post Cash-book. Post from Cash-book to Ledger. Close 
accounts showing losses and gains into “Profit and Loss’ 
account; then close “Profit and Loss” account into “Sur¬ 
plus Fund” and “Reserved Profits” accounts, and take a 
Trial-balance. 

JANUARY 7, 1897. 

(а) The following deposits were made during the day: 

G. Y. Henry.$ 50.00. J.M. Latham.$ 75.50. 

W.J. Wise. 840.00. C. F. Beutel. 230.40. 

C. W. Dill.. 249.50. W. N. Philips. 75.10. 

Note.—Credit depositors in Deposit Ledger. 

(б) Checks as follows were paid: H. M. Clark, $28.00, 
$96.50; C. W. Dill, $40.50; G. Y. Henry, $30 20, $76.45; 








massey’s modern look-keeping. 


163 


W. C. Stephens, *$33.25, $80.35; S. S. Hoover, $20.55; 
R. M. Dozier, $86.26. 

Note.—Enter in “Debit Items” column in Deposit Ledger. 

(c) The following foreign draft was received during 
the day and was remitted to First College Bank, Mont¬ 
gomery, Ala., to be placed to our credit: Draft No. 759, 
drawn by the Corning State Bank, Corning, Iowa, on the 
Fourth National Bank of Chicago, for $1850.65, and 
indorsed by A. A. Marchand. 

Note.—Enter in Remittance Register on page headed “ Drafts 
etc,, remitted to First College Bank, Montgomery, Ala.” 

( d ) The draft left for collection by J. L. Stephens, and 
drawn on the Reid Grocery Co., Montgomery, Ala., was 
to-day returned dishonored, and we have returned same 
to Mr. Stephens. 

Note.—Mark word “Dishonored” in column headed “Remarks” 
in Collection Register. 

( e) Certified a check for $50.00 for S. S. Hoover. 

Note.—Charge Mr. Hoover and credit “Certified Checks” in 

the Depositors’ Ledger. 

(/) Paid check certified for C. W. Dill on 6th inst. in 
cash, $20.00. 

Note.—Charge “Certified Checks” in Depositors’ Ledger. 

(g) Work up Deposit Ledger. Rule up all books and 
post to Cash-book. Post from Cash-book to Ledger, close 
all accounts showing losses and gains into “ Profit and 
Loss” account; then close “Profit and Loss” account into 
“Surplus Fund” and “Reserved Profit” accounts and make 
a Trial-balance. 

Hand in all books to teacher for examination. 


164 massey’s modern book-keeping. 

EXAMINATION RECORD FOR PRACTICE WORK IN 
BANKING. 

Time commenced. 

Time finished. 

GRADE. 

Cash-book, - ------ oj 0 

Ledger. - % 

Deposit Ledger,.- - . ofa 

Discount Register, - - - - - - - % 

Remittance Register, ------ o/ 0 

Draft Register,.. % 

Collection Register, ------ oj 0 

Certificate of Deposit Book, ----- . oj 0 

Trial-balance,. o] 0 

Questions, -.. oj 0 

Examined by.Teacher. 
















Commercial Words and Phrases. 


A cceptance.—A greeing to 

the terms proposed; the ac¬ 
ceptor’s name written on the 
lace of a bill of exchange or 
draft, usually with the word 
“Accepted.” 

Accommodation Paper. —Notes 
or acceptance drawn for the 
purpose of being discounted, 
and not founded on an actual 
sale of goods. 

Account Current.—A running 
account. 

Account Sales.— An itemized 
statement of sales and expen¬ 
ses, sent by a commission mer¬ 
chant to his principal. 

Accrued. —Interest accumulated 
and unpaid. 

Acknowledge.— In commercial 
correspondence, the term by 
which the receipt of a letter,re¬ 
mittance, or order, is admitted. 

Acknowledgment. —A formal 
admission made before an offi¬ 
cer, that the act described was 
voluntarily done. 

Administrator. — One that is ap¬ 
pointed by the court to settle 
an estate. 

Ad V alorem, —A ccording to 
value. A custom house term 
Affidavit.—A written declara¬ 
tion under oath. 

Appraisal. —The act of placing 
a value on goods. 

Arbitration. —The adjustment 
of disputed point by a person 
or persons chosen by the 
parties in dispute. 

Assets.—A term commonly used 
in trade to designate the funds, 
property, or effects, that is, the 
stock in trade, cash, and all the 
available property of a mer¬ 
chant, in contradistinction to 
his liabilities or obligations. 


Assignee.— A person to whom 
the property of a bankrupt or 
an insolvent debtor is trans¬ 
ferred for the benefit of the in¬ 
solvent’s creditors. 

Assignment. —The act of trans¬ 
ferring property to the as¬ 
signee. 

Attachment.— A warrant for 
the purpose of seizing a man’s 
property. 

AuDiTOR.^An officer appointed 
by the government, or by any 
corporation, to examine claims 
upon the treasury, and to in¬ 
vestigate the treasurer’s ac¬ 
counts. 

Auxiliary. —Applied to various 
account books that are kept as 
aids to the principal books. 

B alance of trade,— 

The difference between the 
value of the commercial im¬ 
ports ard exports of any 
country. 

Bank Bills or Notes. —Promis¬ 
sory notes printed by the gov¬ 
ernment and issued by national 
banks, payable on demand, and 
used as money. 

Bankrupt. —One who is unable 
to pay his debts. 

Bill of Exchange. —An order 
for the payment of money, 
usually drawn on a person liv¬ 
ing in a foreign country, the 
term draft being used to desig¬ 
nate bills that are payable in 
the same country in which 
they are drawn. 

Bill of Lading. —A written ac¬ 
count of goods shipped and 
the conditions of shipment, 
having the signature of the 
carrier’s agent, and given to 
the shipper as a receipt. 



166 


massey’s modern book-keeping. 


Bill of Sale. —A writing given 
by the seller to the buyer,trans¬ 
ferring the ownership of per¬ 
sonal property. 

Board of Trade. —An associa¬ 
tion of business men for the 
regulation and advancement 
of commercial interests. 

Bonded Goods. —Those which 
are stored in a bonded ware¬ 
house, or in bonded cars, the 
owner having given bonds se¬ 
curing the payment of import 
duties, or of internal revenues, 
upon their removal, or their 
arrival at some -inland city of 
entry, and before a specified 
time. 

Bonus —A premium given on a 
loan, or for any favor shown. 

Bullion. —Uncoined gold or sil¬ 
ver. 

Business. —Exchange of com¬ 
modities and of commercial 
values. Also a term represent¬ 
ing one’s occupation. 

C APITAL.—The investment 
in business. 

Cash Sales. —The sales made for 
ready money in contradistinc¬ 
tion to sales on which credit is 
given. 

Certificate.— A written voucher 
attesting to some fact, as a cer¬ 
tificate of deposit, a certificate 
of stock. 

Certified Check.— One which 
has been certified or accepted 
by the bank on which it is 
drawn, making the bank re¬ 
sponsible for its payment. 
Charter. —A paper from govern¬ 
ment defining the rights and 
privileges of corporations. To 
hire or let an instrument of 
transportation; as, a ship, a 
railway car. 

Chattel. —Any kind of property 
except real estate, as, merchan¬ 
dise, notes and accounts, ani¬ 
mals, leases of real estate, etc. 
Check.— An order on a bank 
drawn by a depositor. 


Clearing-house. —A kind of 
banking exchange, established 
in some of the large cities for 
the convenience of daily settle¬ 
ments. 

Collaterals.— Pledges of stocks, 
notes, or chattels, for security 
of loans and other indebted¬ 
ness. 

Commercial Paper. —Bills of ex¬ 
change, drafts, and notes, giv¬ 
en in the course of trade. 

Commission. —A percentage giv¬ 
en for the sale or purchase of 
goods, or the transaction of 
other business. 

Common Law. —Law based upon 
the precedent of usage, and not 
contained in the statutes en¬ 
acted by legislative bodies. 

Company. —A corporation. A 
term used in a firm name to 
designate other partners whose 
names are not given. 

Compound, or Compromise. —To 
settle a claim by paying or 
receiving only a part of the 
amount. To agree upon a 
settlement based upon mutual 
concessions. 

Consignee. —One to whom goods 
are sent. 

Consul. —An agent for a gov¬ 
ernment, residing at a seaport 
in a foreign country, and 
guarding the commercial in¬ 
terests of his own country. 

Contra. —On the opposite side. 

Copyright.— The right granted 
by government to an author 
to control the publication of 
any book or work. 

Counterfeit.— A spurious bank 
bill; a forgery. 

Counting-room. —A room in 
which merchants keep their 
accounts and transact busi¬ 
ness. 

Coupon. -An interest note or a 
certificate attached to a bond 
which is cut off from the bond 
and collected when due. 


massey’s modern book-keeping. 


167 


Course of Exchange.—T he sum 
merchants pay for bills of ex¬ 
change to enable them to 
make remittances from one 
country to another. 
Credentials.— T estimonials 
giving authority. 

Creditor. —One giving credit; 

one whom we owe. 

Currency.— The paper money 
or the coin which constitutes 
the circulating medium of a 
country; that which passes 
for money in a country. 

D AYS OF GRACE.—Negoti¬ 
able promissory notes or 
bills of exchange payable at a 
certain time are entitled to 
three days’ delay beyond the 
time expressed, which are 
called days of grace, unless 
“without grace” is expressed 
on the paper. 

Debtor. —One who owes a debt. 
Deed. —A written contract un¬ 
der seal, usually transferring 
the ownership of real estate. 
Defalcation. —Deduction or dis¬ 
count. Embezzlement of mon¬ 
ey by an officer having it in 
charge. 

Deposit. —To commit to the care 
of another; especially to place 
money in bank subject to our 
order. 

Dishonor. —A failure to pay an 
obligation when due. A fail¬ 
ure to accept a draft when pre¬ 
sented for acceptance. 
Dividend. —The portion allotted 
to each stockholder in the divi¬ 
sion of profits. 

Dower. —The right of a widow to 
a life interest in one-third of 
all the real estate owned by her 
husband at any time after their 
marriage. 

Due-Bill. —A brief, written ac¬ 
knowledgment of a debt, bav¬ 
ins: the effect of a promissory 
note, 

Dunning. —Soliciting payment 
for debt. 


E ARNEST.—Part of purchase 
money paid, or part of goods 
delivered to bind a verbal con¬ 
tract. 

Embezzlement.— A fraudulent 
appropriation of money en¬ 
trusted to one’s care. 
Emporium. -A commercial 
center. 

Endorse, or Indorse. —To write 
one’s name on the back of a 
commercial paper. 

Engross. —To copy in manu¬ 
script. 

Equity.— The science of right 
and justice, which often cor¬ 
rects the application of law in 
a particular case. 

Exchange. —The giving of one 
value for another. 

Execution. —A written direction 
given to an officer authorizing 
him to enforce a judgment. 
The act of signing and sealing 
a legal iustrument. 

pAOSIMILE.—An exact copy. 

Fee Simple.— The absolute own¬ 
ership of real estate. 

Financier. —One having charge 
of the public revenues. One 
skilled in money matters. 

Fiscal.—P ertaining to the pub¬ 
lic treasury or revenue. 

Fixtures. —The furnishings of a 
store or office that are not mov¬ 
able. 

Folio.— The page of an account 
book. 

Footing.— The amount of a col¬ 
umn of figures. 

Forgery.— The act of fraudulent¬ 
ly writing or altering a writ¬ 
ten document. 

Free Trade. —Com m er ce be¬ 
tween nations unrestricted by 
duties or tariff regulations. 

Freight.— Merchandise being 
transported. The price paid 
for transportation. 


168 


massey’s modern book-keeping. 


G auging.— The process of 
measuring the contents of 
casks. 

Good Will. —The reputation and 
patronage that pertains to an 
established business. 
Greenbacks.—U n i t e d States 
notes, as distinct from national 
bank notes. 

Gross Weight.—W eight of mer¬ 
chandise, including the case or 
wrapping. 

Guarantee, or Guaranty. —A 
surety for the performance of 
a contract, in case the party 
making the contract fails to 
keep it. 

H ONOR.—To accept a draft, 
or to pay it when due. 

I NDEMNITY.-Security against 

1 loss, such as may occur, or has 
occurred, by reason of some 
particular or specified event, as 
in case of ordinary insurance 
against loss by fire, etc. 
Indenture.—A mutual agree¬ 
ment in writing between two 
or more parties. 

Indorsement.—A writing on 
the back of any commercial 
paper. 

Infringement.—T o trespass up¬ 
on the rights of another, es¬ 
pecially when granted some 
special right by law, such as a 
copyright, a patent, or a trade¬ 
mark. 

Injunction. —A writ or process 
by which a party is required to 
do or to retrain from doing a 
special act. 

I. O. U.—I owe you—an acknowl¬ 
edgment of indebtedness. 

Insolvency.—T he condition of 
one who is unable to pay his 
debts or meet his commercial 
obligations. 

Installment.— Part of a sum of 
money paid or to be paid. 

Instant.— Referring to the pres¬ 
ent month. 


Intestate.— Dying without 
having made a will. 
Inventory.— A schedule or list 
of the goods, wares and mer¬ 
chandise generally, credits and 
assets of a merchant, made out 
in minute detail, each article 
being set down separately, and 
separately valued, usually, ac¬ 
cording to its then cash value. 
Invoice— An itemized bill of 
merchandise bought, sold 
or shipped. 

J OBBER.—A wholesale mer¬ 
chant who buys goods from 
the importers and manufac¬ 
turers, and sells to country or 
other merchants and to re¬ 
tailers. 

Joint Stock.— Property held in 
common by a company of men, 
each of whom is called a stock¬ 
holder. 

Judgment.— The decree of a 
court enforcing a contract or 
redressing a wrong. 

L EASE.—The letting of land 
and other property for hire. 
The contract for such letting, 
usually written, but sometimes 
verbal when the contract ter¬ 
minates within a year. 

Legacy. —A gift of property by 
will. 

Legal Tender— That kind of 
money which legally can be 
offered in payment of a debt. 
Letter of Credit. — A letter, 
usually addressed to banking’ 
houses in foreign cities, au¬ 
thorizing the holder to receive 
credit for a stated amount. 
They are used mainly bv 
travelers. 

Liabilities.— The pecuniary ob¬ 
ligations of a merchant, which 
includes his bills payable and 
all his other debts. 

License.— Permission or liberty 
to prosecute business or to 
sell. 

Liquidate.*— To pay or settle a 
claim. 


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